Share price variability

sevenhills

I saw NMC Health Plc was a recommened buy, so I bought some. They are up 17% and still a strong recommended buy.
There is a way to go before they reach what they were last year. They were up 7% yesterday and 5% today.
Lots of money to be made for people that know which way the share price will go, I am just hoping to be lucky.
What is normal for share price variation?


https://www.lse.co.uk/SharePrice.asp?shareprice=NMC&share=NMC-Healthcare

benbay001

sevenhills wrote: »

Lots of money to be made for people that know which way the share price will go

A great insight. Thank you for sharing

coyrls

sevenhills wrote: »

What is normal for share price variation?

They can't go below zero.

gingerscot

Many shares are recommended buys by many organisations and tipsters every day, may will go up, many will not. If it was that easy we'd all be billionaires.

NMC Health was shorted/attached by Muddy Waters (investment management company) claiming it had finance and asset valuations were way off.

So if you had bought the Shares a month ago you'd be down 50%. If you bought 3 weeks ago when it was initially recovered and tipsters were saying the same thing, you'd be down 15%.

Reason it went up today was that they've hired some ex-FBI director to produce a report to counter the allegations. Could it go further? Probably. Could the claim have merit and over the next 6-12 months slowly we see the true picture? Possibly.

For such a large company on FTSE, the share does have massive swings and is very volatile so no, it's not normal for a multi billion market cap. It's more like a AIM share tbh bar it's obviously easy to sell/liquid. It can easily swim upwards of 5-10%/day on little to no news which is very unsusal for a FTSE company, especially a FTSE100 (if it's still in?).

The reason you are seeing it is precisely because of it's volatility, the massive fall in share price and news stories. There are many short term traders wanting a quick buck and this is exactly the kind of situation that tempts them and such articles and tips will appear.

aroominyork

sevenhills wrote: »

Lots of money to be made for people that know which way the share price will go

Just think about that for a moment. Do you think there is a single person or entity (deities aside) that knows this?

veryintrigued

I'd be careful you're not seen to be trying to recommend a share

Thrugelmir

sevenhills wrote: »

Lots of money to be made for people that know which way the share price will go, I am just hoping to be lucky.

Roulette wheels are best avoided. You never know what might happen on the next spin.

EdGasketTheSecond

aroominyork wrote: »

Just think about that for a moment. Do you think there is a single person or entity (deities aside) that knows this?

Insider traders know it so yes, there are definitely people in the know and they do make a lot of money although it is illegal.

jamei305

Recommending shares is easy. On average most shares go up more than down, otherwise no one would invest in them at all. Every pundit should therefore have a good track record.

sevenhills

gingerscot wrote: »

Many shares are recommended buys by many organisations and tipsters every day, may will go up, many will not. If it was that easy we'd all be billionaires.

Just looking at HL site in more detail.
Barclays Capital, 07/01, Reiterates, Overweight, Overweight and Goldman Sachs, 28/10, Reiterates, Buy, Buy, 4,170.00p
But yet it stated 'strong buy'

[Deleted User]

sevenhills wrote: »

Just looking at HL site in more detail.
Barclays Capital, 07/01, Reiterates, Overweight, Overweight and Goldman Sachs, 28/10, Reiterates, Buy, Buy, 4,170.00p
But yet it stated 'strong buy'

Ah yes the "Hargreaves Lansdown" experience.