Money follows attention
October 24th, 2019
⏰ 1 minute read
⏰ 1 minute read
Price?
Yes we understand there’s still plenty of frustration from investors about our share price. BWPT doesn’t seem to be going anywhere. This is despite the fact our production & the price have risen over the last few months as you can see daily here... but there is something about the share which has increased a lot... what is it?
10x
What has increased is the daily trading of our shares. End July when we gave the public expose presentation about heading back to profit & started the daily profit estimator... our daily trading was just 3m shares. Now just a few months later, the average daily trading has reached 30m shares, a 10x increase!
Tracking
Not only has the trading volume of BWPT shares increased, but the movement of the the trading activity has closely matched the performance of our daily profit estimator which uses the 31 day production & the daily market price. The volume jumped from late July to early September as the estimated profit went from big loss to (almost) profit. Then declined for a bit, but is now rising again.
Liquidity
While the share price is difficult to control, trading volume is something we can target. We measure the share liquidity by comparing with the total shares. In our heyday when BWPT was above 1,000, our annualized liquidity ratio was 90%, much higher than the JCI average. Now, 30m shares a day annualized is 7.2bn which is just 22% of our shares. We will be working to triple our average volume again from here.
Price
Volume isn’t price, But volume is often a good leading indicator of price. Hopefully the 10x increase in trading volume is predicting an increase in the share price is coming. One thing we can say is it shows a higher level of interest in & attention towards our shares, both positive & negative. As they say...money follows attention.
Sebastian
Yes we understand there’s still plenty of frustration from investors about our share price. BWPT doesn’t seem to be going anywhere. This is despite the fact our production & the price have risen over the last few months as you can see daily here... but there is something about the share which has increased a lot... what is it?
10x
What has increased is the daily trading of our shares. End July when we gave the public expose presentation about heading back to profit & started the daily profit estimator... our daily trading was just 3m shares. Now just a few months later, the average daily trading has reached 30m shares, a 10x increase!
Tracking
Not only has the trading volume of BWPT shares increased, but the movement of the the trading activity has closely matched the performance of our daily profit estimator which uses the 31 day production & the daily market price. The volume jumped from late July to early September as the estimated profit went from big loss to (almost) profit. Then declined for a bit, but is now rising again.
Liquidity
While the share price is difficult to control, trading volume is something we can target. We measure the share liquidity by comparing with the total shares. In our heyday when BWPT was above 1,000, our annualized liquidity ratio was 90%, much higher than the JCI average. Now, 30m shares a day annualized is 7.2bn which is just 22% of our shares. We will be working to triple our average volume again from here.
Price
Volume isn’t price, But volume is often a good leading indicator of price. Hopefully the 10x increase in trading volume is predicting an increase in the share price is coming. One thing we can say is it shows a higher level of interest in & attention towards our shares, both positive & negative. As they say...money follows attention.
Sebastian
