30 Jul 20: Diary of an Investor: AVA on 4Q20 4C Release
The AVA 4Q20 was released around 8:30am and I realised that it was a really good result and will most likely cause a spike in the share price. I wanted to average up the holding so I made a mental note to put an order on open.
However, a whole heap of other 4Cs came out. I made the decision to sell my holding MOB based on it's 4C. I also happened to be listening in to the Coffee Microcaps call (talk about multi tasking!).
So when it close to the open, I was focused on making sure that the MOB sale went through as it is a fairly illiquid stock. But then the price trigger went off for AVA pricing through $0.20. Then I released I forgot to put the order on for AVA (doh!).
After the MOB trade went through I went to the put on the order for AVA but it had already gone from $0.20 to $0.22. I normally would hesitate to chase a stock up especially when it had popped 25% already on the day but even at $0.22 I considered the stock undervalued on the fundamentals so I bit the bullet and when through with the order.
To my disappointment, the stock then started dropping to below $0.20 and to $0.19 and I was starting to doubt my decision. Had I made a mistake? I knew that AVA had burnt shareholders previously so that there would be selling pressure but I didn't know how much.
I left for meetings and didn't follow what was happening (probably a good thing).
In the end, the buyers won out and the stock ended on it's 12 month high of $0.255.
Not sure if all the sellers have been flushed out yet, but it is a possible fort he stock to have ended on a new high.
Fundamentally, the stock is not expensive, based on today's forecast for FY21.
