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ICARUS EXCLUSIVE: ASX.WTC – WiseTech

WTC Smashes Söze

Quick Sum
Well, this is never a pleasant article to write, but more pleasant than the dollar impact to my portfolio by going short on WTC last week. From close of trade prior to their annual report numbers being released, they are up 30ish%.

Doesn’t make it any better that the same investment bank I referred to has raised their price from $18 to $22.20. WTC currently sitting at $27.90 with solid volume behind the last few days. I do note though that the same bank has raised the price, but then maintained a sell rating. None of that makes sense to me, make of it what you will. 

I would put a chart in here, to show you the price rise, and volume, but I simply can’t look at it.. Way too much gregarious ghastly green on the screen to be seen. 

So Söze apologises sincerely to all that placed the short on WTC. 

But, we pick ourselves up, and re-assess, and then keep going. The only sure way to fail forever, is to give up forever. 

So What’s Next?
I’m looking at all stocks running into reporting days, seeking those that have had slight uptrends over  3-5 day period, then comparing to similar sectors/competitors that have released results with positive share price rises. Then making a judgment call based on volume, potential upside/downside. Risky but with a tight SL in place, and some research, this season has shown there is 10-15% for the taking.

Trade Idea For The Week
Starting by admitting my face palm efforts last week, lets end on something positive. I’m long ASX.MTH. Mithril Resources (Yes I know there has been a focus on resource stocks, next trade idea will be a different sector I promise!!). 

Mexican based gold/silver exploration firm, with some Australian options they contract out.

Two reasons I am long, even after the stock has run hard lately. 

1. insider buying/selling figures, and they are doing so, just before a big drill test results are due out. That said there was a major inside selling, and all transactions are heaps lower than current share price, but they are net buyers by a fair bit. 

Note: Market Index do a great job of listing insider buying. Epic site. Love it Lads/Ladies !! Keep it up !!

Table : Market Index – Directors Transactions

Table : Market Index – Directors Transactions

2. First assays are due early September, I’ve seen the 8th September, but can’t seem to certify it with other sources. So I’ll leave it at early September (don’t ever accuse me of just making stuff up😊😊)

MTH are up 170% since min/early June (600++% since march). I entered Friday at 0.038, fairly tight SL on this one. Got a 1% capital allocation, and as it’s a volatile little sucker, but with a small capital allocation in play, I’ve got a 10% SL on it. Annual report due 4th September according to this site.

Chart: ASX.MTH – Daily – Courtesy Interactive Broker

Happy trading this week peeps….. And again, truly, terribly, and eternally sorry for WTC…

Someone said this… Not sure who. 
“It’s not how many times you get knocked down that count. It’s how many times you get back up again.”
But this sort of doesn’t relate to trading. Get up again sure, but analyse, adjust, and above all, learn.
Keyser Söze

Stuff I Read To Write This Pulitzer Piece
Think Markets
Mithril Resources
Finance Yahoo
Morning Star
Market Index
Intervactive Brokers

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