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Online Share Trading

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Why would anybody buy Sappi at the moment?

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eddy66
Super Contributor
The market is down and Sappi is up 3%. Would anyone please explain this to me? I'm short at 25,should i just take my loss or hang on.Is there a drop in the near future? Any opinions?
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70 REPLIES 70
SimonPB
Valued Contributor
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eddy66
Super Contributor
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Not applicable
Well they buying probably cuase you shorted ;-) Seriously you have to watch themarket and time your entry. IMO there will be a slight pullback this week as it is bumping the 26 mark and does not get momentum through it so the obvious choice is retreat and re-think. If yous erious ly need the cash close out if you can hold it for 7 to 10 days keep the stock. OMO!
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eddy66
Super Contributor
Thanks CPS,it helps a little.I'm not in need of cash at all,just not enjoying this upward move.I shorted 500k,which is alot for me.I'm just affraid it shoots up another 10%. Do you think it will?
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Not applicable
Because it is valued at R25. Trading at value. Breaks 26 there can be a nice run to 30. I see it coming back to 21 before going up again- this market anything can happen though!
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eddy66
Super Contributor
I am so screwed at the moment.Made my position shorter and shorter,and sappi is still going up.40 % up in just over a week,how on earth can a stock with bad results and bad outlook going forward not come back a bit? I'm at a loss of 60k just today.I don't know what to do,please help!!
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SimonPB
Valued Contributor
reduce trade size and know your exit strategy before you enter and do not add to a losing position ..
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Russ
Super Contributor
There is resistance at 26.50,which is about what it reached on Friday.I wouldn't close my shorts before then.It is also very overbought.There should still be a decent correction.For your sake I hope so.
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Not applicable
Looking more and more likely that we might see a run to 30.
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eddy66
Super Contributor
Thank you Simon and Russ! I can only hope at this stage.It is overbought,but it seems there's no logic in this market.It would probably be wise to make my posiyion a bit smaller and take a loss...?
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SimonPB
Valued Contributor
forget logic and hope .. probablity and systems are all that count .. an the only truth is the price ..
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eddy66
Super Contributor
so what would you do in my situation Simon? My exposure is 1.6m.Should I wait or just take my loss?
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Not applicable
Maybe swop it for a long dated call and leave it. The market is recovering and sappi did drop really fast - so the opposite is likely. 6 months we can see 35-40.
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Not applicable
It is sitting on support as oppose to resistance for the last couple months
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Russ
Super Contributor
Old support around 18.Could still be a pullback towards that.
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eddy66
Super Contributor
I would just like a pullback to 25! Do you think it will go to 25 before it goes to 27? As soon as it's at 25 i'm exiting my position.This share is too volitile and unpredictable...
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Russ
Super Contributor
I'm just saying I wouldn't exit shorts when the share has run so hard and is so overbought.Just wait a bit!
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Not applicable
Eddy66,if you have perhaps sap in your sharetrading account you can try to lead the market lower by selling 1 share at a time at lower prices.
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eddy66
Super Contributor
Allright Russ,much appreciated.In times like these a comment like that makes the world of difference.When you start staring at the money you're losing you forget why you did what you did in the first place.You forget to trust your gut.I'll thank you tomorrow when it trades at 24 :)
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