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Stock Advice (Halt)
db09striker
Posted: 11 March 2017 15:14:59(UTC)
#1

Joined: 04/03/2017(UTC)
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Hi,

Just after some stock advice as I am new to the stock market.


There is a stock I am interested in. It is currently halted waiting for news to be released. The stock was halted on Thursday and Friday and there is potentially some very good news awaiting to come out, not necessarily in this news release, but something positive is likely in the near future. As with any halt the news could be good or bad this time...


1. Should I line-up an order to buy shares? Is it a first come first served type thing? So therefore I should set up an order so that I have a better chance of getting shares at the price I want?

2.Do stocks open at the same price as they were halted at? if so, and the news is positive - what are the chances that an order for the halted price go through? Say the stock was halted at $0.60 and I had an order waiting at $0.60, what is the likelihood of the order going through? Should I put a higher order in place of say $0.61 or $0.62? or higher?

3. If the news release comes on Monday and it's positive then I just watch and wait for my order to be filled. If it's negative then I just cancel the order before the stock is resumed.


How should I play this?

Thanks.

Keith Hilton
Posted: 11 March 2017 17:35:40(UTC)
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1. That would be a gamble since the shares might tank, if the news is bad.

2. No.

3. Can you guarantee that you could cancel the order in time? You might be able to submit the request in time, but that doesn't mean it'll be actioned in time.

From what you say, it would appear that it's probably good news coming out, in which case the shares will probably be marked up before you can deal.

However, putting in a straight limit order would probably be bad, if the news is bad. If your platform supports it, could you place a limit which only triggers when the share price has risen a set amount, say 3% or 5%. This would stop you buying if the share price opens down, but wouldn't help if the shares rose first and then plummeted.

Unless you want to gamble then it's probably best to wait for the news and the shares to be unsuspended. If you've missed the boat with this one, then like buses, there'll be another one along soon.
srg751
Posted: 11 March 2017 18:19:11(UTC)
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Which market does it trade on ?
srg751
Posted: 11 March 2017 18:36:22(UTC)
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Your first objective is to read and process the news. Then you need to make the decision whether to buy the stock or not. No point in placing an order to buy if it's bad news and in any event, you'll not get in before the market makers re rate the stock anyway. All you can do is your homework and be ready to act decisively, if you 'know' that the news will be good, you'll not be the only one so I'm afraid you'll miss out on the lions share of any re rating. Can't have your cake and eat it, as they say.

If your'e new to trading, be aware that you could potentially buy in the morning at the higher price, only to see it drop back when shareholders who took the gamble sell their shares to realise their profits. Oh, and be aware of the spread when deciding whether to buy or not. ( that's the difference between the price that you pay and the price that you'll be given when you sell.)

GL
Alan Selwood
Posted: 11 March 2017 21:25:30(UTC)
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In this sort of scenario, it might be safer to take up betting on horses!

Seriously though, it's going to be high-risk, and on balance high-risk deals come unstuck. (That's why bookies rarely go bust).
Likely to keep you wealthier if you DON'T participate until all the news is out, and if the future then still looks vaguely positive AFTER others have jumped in and the price has adjusted. Don't expect to get the cheapest price, since unless you are a market-maker you don't get a chance to deal until after the market has opened, whereas the market-maker can adjust the prices before that point.

Thinking back to the late 1980s - early 1990s, the time to buy shares in Guinness was when you knew all the bad news was in the public domain, not before.
1 user thanked Alan Selwood for this post.
Keith Hilton on 11/03/2017(UTC)
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