What’s Happening to the Share Price of Strategic Elements Ltd?

What does Strategic Elements Ltd do?

This is a follow up to a posting I made just over a week ago on 18 August 2015, which you can see here.

Strategic Elements Ltd [ASX:SOR] is a company with a mandate to back Australian resources and technology projects.

The company is quite unique to the ASX. Most shareholders pay no capital gains tax when they sell their shares and no tax on any dividends received.

This is because the company has a special registration from the government as pooled development fund. The program to designed to increase investment in Australian companies.

It’s backing a nanocube memory technology developed by the University of New South Wales, tiny cube shaped memory cells, 10,000 times smaller than a human hair. It will revolutionise how data is stored and used, enabling more data to be used faster, with less space and at less cost on all devices.

Anyway, in my previous post, I had this to say;

‘The company could possibly have more news to announce soon. Let’s wait and see.’

As if on cue, three days later the company went into a trading halt, pending an announcement.

A crystal ball would always be handy, but you actually don’t need one. With some basic chart reading ability you can forecast the market in advance. It’s definitely handy knowledge to have. You can get that knowledge here.

Anyway, the announcement released yesterday was of a development break through where its nanocube memory technology has been developed into a printable ink.

Printed electronics are nothing new. But one of the drawbacks is that the memory components of printed electronics perform poorly. The nanocube technology will allow flexible, transparent, printed electronics with memory cells that have extra high performance. A real breakthrough in printable electronics, potentially transforming the industry.

That’s interesting, but what is the chart telling us now?

What does the chart look like?

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

Strategic Elements Wednesday Chart

Source: STEX

You can see how the company went in a trading halt. Upon the announcement yesterday, the share price went down on positive news.

What now for SOR shares?

You could watch it now; see if the share price can form any higher bottoms. This is an exciting company to watch and follow with all the new developments they are backing.
To the complete beginner it doesn’t make much sense that the share price should fall on very positive news. But you must understand why this happens, because until you do, you will struggle to understand and profit from markets. If you don’t understand why this occurs, then you need to go here. Not next week, not tomorrow, now.

You won’t fully grasp the market until you do.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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