I have to agree regarding the volatility of FUM shares: I’m quite convinced it’s down to day traders!
If you read the posts especially in the other main LSE board, it is littered with messages from day traders. For these guys a month in a stock is like a few years to long term holders. They pile in on high volume when there is expectation of a potential stock moving event. Just as quickly as they went in, they leave again causing huge volatility (& nervousness) for the long term holders to bear.
They like the fact that FUM has the propensity to ‘multi bag’ but they don’t have the patience or inclination to invest for the long term. So instead they ride the ‘up waves’ making them very sharp. And of course, when they sell to book their profits, you get the sharp down turn.
These guys use their ‘charting’ to help time these entry & exit points.
Day traders have their favourite stock lists that give a good propensity for volatility. Unfortunately, due to the quite illiquid nature of FUM stock, it makes it a perfect contender.
For us long term holders, we just need to sit tight and try to ignore this extreme volatility.
As I’ve mentioned before, the future of FUM lies in the chemistry of their products. I believe in this the team are very strong. They are inexperienced from a business savvy perspective, but I think they’re learning from their past mistakes.
Ultimately, success or failure will come down to the chemistry.
GLA & keep the faith!