JIN
The illogical logic....
When more and more were using Sydney Airport, the share price went lower and lower with each good announcement. The reverse occurred recently.
When a jackpot is not won and therefore, accumulates for the next one, more people buys that lottery. The yearly report from JIN says that the more frequenty jackpots (>$15M) occur, the more punters are drawn in. Yet like SYD, the same is occurring!
Fascinating how logic functions illogically! Well, not my logic!
posted by Club Mulgoa @ 10:15 PM
6 Comments:
On the 16th Aug, JIN came out with such a nice announcement. Perhaps some investors were expecting a lot more so they sold JIN off. I couldn't buy them fast enough. In fact I bought 3 parcels and each buy was lower than the previous one. That made me wonder whether there was insider information. When it tumbled again after the weekend, I went in to buy more.
And then it turned up and up. It amazes me who are these idiots who are selling? Perhaps, the sellers had already made a huge profit. For purchases made in the last 6 working days, it has gone up from $16+, $17+ and $18+ purchases to over $21.33.
Tonight there is $10M Oz Lotto draw. The funny thing is if the jackpot increases due to no winner, then the share price goes down! The illogical rules in the short term.
Fancy that, today, JIN has climbed to $26.10 without any announcement.
Last night, no one won the $100M jackpot so it has gone up to $150M next Tuesday.
The illogical move is while more punters will try their luck to get that jackpot next round, the share price often comes down!
Another illogical day!
Yesterday, no one won the Oz Lotto jackpot so it has jumped to $25M for the next draw. That will pull in more punters, giving JIN more commission from those betting online. Yet, the share price went down following all the other lemmings in the market.
Yes, I topped up a small parcel which I didn't expect to collect!
The poorer people buy lottery in the hope of winning the jackpot and many promptly lose them all.
The arithmetic savvy people buy the seller of lottery in the hope of getting the dividends and capital appreciation.
While punters are mostly losing, my JIN value has gone up net 200% today, i.e. 3X what I paid for in total. Today, it went over $27 and my first parcel was only $1.45. It took a lot of courage to buy when it was around peak but it kept peaking since!!!
What a nice yo-yo stock! But it is a yo-yo that trends upwards. Movements are in 1-4% in a day! And often the bounce or the plunge has no obvious logic to it. And I often top up when it has a sharp downwards fall.
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