Between approx. 9 & 11am this morning the SP has dived 6%, close yesterday was 1825, now about 1700, but I can't find any news...
I'm very new to Stocko BB's, more concerned at FDEV's slide this morning
About the Author
QinetiQ70
10 comments
MiserableJacktPotato
Probably because the reviews for the new Jurassic Park film are out and they’re, well, not great would be my summation of them.
willhampson
Hi Qineti, others may have precise info but I suspect its just normal profit taking. Remember, its gone from £13 to over £18 in a month; that's a lot more than the 6% drop you mention!
A lot of the rise in Frontier Developments (LON:FDEV) has been on the back of its Jurassic Park game being released next week (I think). It is quite common for stocks to have a buy the rumour, sell the fact attitude so it would not shock me if this is/were to occur here to some extent.
Awk
I agree although there may also be an element of "tree shaking". Not unduly worried and now -4%.
Velo
Checking the price action on this share and judging by it's recent history, it's well within the it's recent history range of "noise", especially for a small cap stock, which can be notorious for volatile SP movements in a single day.
But did discover that FDEV on last Thursday was added to the MSCI Small Cap UK index. In all likelyhood it may just be ii's /funds moving in and out of FDEV because of changed parameters in their holdings, per sector. Some may already be overweight in that index, just guessing really. Clues might be found in the volume. Last Thursday itself stood out for that day's volume being seriously well above the long term average volume - so defo some shifting of boundaries with the ii's etc., in their holdings in FDEV on the same day of the move to inclusion in the MSCI Small Cap UK index.
(Curiously a day or so before last Thursday their was an even larger above average volume day)
- so two excessivley above average volume days last week that clearly stand out, in which FDEV was added to the index.
Does that sound half reasonable?
PS. On technicals: Just noticed it has been in overbought territory from mid May until last night, and was due for a sell-off to bring it down from that high Relative Strength rating. (It's dropped out of overbought as of today) So yes the comment earlier by someone that it could be profit-taking holds water too.
QinetiQ70
Morning all, and thank you for your comments, I think it was just a tree shake and I topped up with some cash in the ISA account, this after seeing some clips on utube of the movie - Cineworld (website) has some good clips and info. I find I usually enjoy films the critics pan, they are not called critics for nothing....I think it will be a blockbuster with all the kiddies demanding that mum and dad (the lucky ones) will take them to see it, so not one seat but 3 or 4 in the cinema. And the game will be demanded also, cross breeding your own T-rex with other species and letting them loose - well that appeals to me too!
I have had these shares in the past and sold but now they are keepers, and doing very well but I wasn't quite used to the volatility, but I guess that's the new norm.
Best of luck to all holders
QinetiQ70
Yes I have read a few critics reports, the thing is the critics are adults and probably won't enjoy a film like Jurassic that younger people and kids will - who just want to be entertained for a couple of hours and enjoy T Rex et al charging around and gobbling up people and creating havoc, words like nuances do not play in the younger mind as regards the film. Personally I think the kids will love it and then want the game to create their own monsters for one thing - and then to create havoc...
Is the critics poor reviewing (some only) having the negative effect on the SP?
mmarkkj777
I bought these last week and got stopped out. Didn't account for the volatility. May get back in if an opportunity presents itself. Apart from the underlying fundamentals and momentum, the kids in our family absolutely love these films and everything associated with them.
QinetiQ70
I bought these really because of tencents part ownership and the Jurassic game being sold in China which apparently is on the cards according to a post on ADVFN.
Some years they have 2 games out - the SP does well, some years like this one they only have 1 game and the SP doesn't do so well - so I have been informed again on ADVFN, so will hold to next year, they have dropped a lot so may be a buying opportunity .....hope so!
