Sirius Mins. for 18/09/2019

#FTSE #SP500 Our previous report on Sirius lacked enthusiasm. Sometimes, share price moves leave a bad taste and Sirius was starting to remind of a poisonous AIM share called Vialogy. That nasty little company started to exhibit all the symptoms of a board who were happy to treat investors as their own little piggy bank. By issuing additional shares for in-house options, the number of shares became diluted and of course, staff members at Vialogy would simply dump their awarded options and pocket the proceeds. The share no longer trades.

Obviously, Sirius as a respected member of the FTSE250 will surely be monitored more closely than Vialogy, so perhaps our cynical attitude is completely unfair. Unfortunately, as a respected member of the “250”, we fear they shall opt for the next page of the playbook. This will involve a share split, potentially at 10:1 ratio and allow the price to once again look respectable as it multiplies by 10. Alas, folk who purchased in 2018 at 40p while they absorbed all the positive sentiment in chatrooms will be doomed to await Sirius growing to 4 quid in the future, just to get their money back.

Offhand, we cannot think of a single instance where this has actually happened…

Alas, Sirius price movements, despite some very strong sentiment amongst internet discussion forums, has been “feeling” similar to Vialogy, hence our lukewarm approach to its future. Yesterday, 17th September, the market enacted a painful “gotcha”, one which doubtless ensures many loyal investors (who’ve been living for the next positive press release) now are trapped with their funds going on a prolonged holiday in the absence of miracles.

Our “ultimate bottom”, the point at which we can no longer calculate below is at 1.18p.

To arrest the rate of decline, the share price presently requires better Blue on the chart, 12p at time of writing. Unfortunately, it seems more likely we shall see weakness below 3.67 drive the price to 3.33p next, a point where some sort of bounce can be hoped. Secondary, if broken, is at 1.18p. The share price requires exceed 5.74p before there’s an initial glimmer of hope a bounce is serious as 6.5p becomes the initial target. Above this point and we’d need stir the tea leaves again as there’s a chance any bounce is liable to be fairly useful.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:26:30PM

BRENT

63.58

               

‘cess

9:28:38PM

GOLD

1501.49

               

Shambles

9:31:26PM

FTSE

7316.25

7290

7262

7217

7350

7352

7364

7388

7301

‘cess

9:46:19PM

FRANCE

5617

               

Shambles

9:53:08PM

GERMANY

12382

               

‘cess

9:59:16PM

US500

3005.67

2990

2985

2978

3001

3006

3009.5

3016

2994

‘cess

10:14:46PM

DOW

27115

               

10:16:41PM

NASDAQ

7894.37

               

‘cess

10:19:53PM

JAPAN

22037

               

‘cess

17/09/2019 FTSE Closed at 7320 points. Change of -0.01%. Total value traded through LSE was: £ 6,089,337,683 a change of 3.99%

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