RYM - Ryman Healthcare

[Joshuatree]

I dont think RYM is dropping just on the negative publicity; big shareholder taking profits maybe? Any chartists have any views on where to from here before a base is formed/ cheers JT

[CJ]

I dont think RYM is dropping just on the negative publicity; big shareholder taking profits maybe? Any chartists have any views on where to from here before a base is formed/ cheers JT

Not a chartist but it has dropped below the 50 day moving average. taking a bit of profits is my guess.

[bobxia]

might be due to fund managers raise cash for Z IPO.

[Joshuatree]

Selloff maybe finished, last day for most to get the cash together for Z.

[winner69]

Joshuatree, you are probably right, but I have say, who would sell up Ryman for Z.....? Is Z really that good a company that its better than Ryman?

That's what I was thinking sparky .... if I had anything in a fund whose manager was doing this I would have something to say

[bobxia]

Passive fund managers whose mandate is to follow nzx50 weightings will have no choice but to sell stocks to fund Z.

[iceman]

Passive fund managers whose mandate is to follow nzx50 weightings will have no choice but to sell stocks to fund Z.

But not Ryman !

[bobxia]

In general strong performers like RYM tend to overweight (comparing to NZX50 weightings), and these passive guys will sell overweights, and buy underweights as part of their rebalance process. The idea is to generate a market return, rather than stock picking to beat the market.

[blakecb]

There are some warning signs appearing with Ryman that would be good to keep an eye on (see the attached chart).

It is testing a number of things right now - the 50ma (pink), support level (orange), neckline of the head and shoulders reversal pattern (black). It is also in bear mode on the RSI and DMS. It may yet bounce off all these things and be okay, but if it starts breaching them all, it would be a good indication that it is time to exit.
Attachment 4739

[blakecb]

I clearly said if it breaches those lines then it is not okay, but hasn't done so at this point. I thought it was better to put up the chart now than put it up after the event and say, "Look the chart predicted it." Kind of the way seismoloists go about their work (I've never understood the point of that profession). And someone above actually asked for a chart.

I agree Ryman is a good company but the market, as always, is trying to decide the right price for it. There has been a lot of activity pushing it higher, but perhaps it has gone 'too high' in the eyes of the market. I didn't even mention the shooting star candle at the peak, in which bulls tried to push price up but met with resistance. Or the market may consolidate and then decide, in fact, that it is worth more, and so it will push higher.

I note that various (fundamental) analysts value RYM in a range between $5.10-$7.17 - so no wonder there is some indecision in the market as it is at the top end of that range. (Yes I know it has beaten expectations before, but that's not what the chart is currently showing.)