What’s Happening to the Share Price of Aleator Energy Ltd?

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This is a follow up to posting I made on Aleator Energy on 17 August 2015, which you can read here.

What does Aleator Energy Ltd do?

Aleator Energy Ltd [ASX:AWD] used to be an oil and gas exploration company. However, Aleator Energy has moved away from the troubled energy sector and found an opportunity in the telecommunications sector, by acquiring Vonex Ltd.

Vonex potentially has a ground-breaking app which seamlessly links all communications, making them interoperable. You can read more about it in my previous post.

I mentioned the fact that Aleator Energy released news to the market, confirming their intention to acquire Vonex Ltd. This is what I said at the time.

‘Well it had news late last week; the company formally gave notice that it is planning to go ahead with the acquisition.

‘You have to be a little careful now, all that is known about the acquisition, might be fully priced into the stock for now. We just have to wait and see how it reacts to that news.’

OK what is the chart telling us now?

What does the chart look like now?

I find it helpful to bring up a chart. Here is the daily chart of AWD, updated.

Aleator Energy Chart

Source: STEX

In hindsight the words of caution appears to have been a reasonable call. If you bought AWD shares on the day the post was written, your capital has been halved in a very short time.

What you should do from now on

Whenever you’re doing your homework on a particular company, it behooves you to always check the company announcements, to see what they are telling you. Can you see just how valuable it is to do so? It does inform your risk management decisions.

To find out more about this approach to the market, go here.
Cheers,
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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