Tinybeans (ASX: TNY) (OTCQB: TNYYF) shares are down 21% today in Australia. The last price movement in the US OTC markets was up. The two prices do not track each other well at all either. So, we might think that there's something that can be done here. Except, well, to a large and high level of accuracy, no, there isn't. Simply because no one is trading in these shares. Therefore there's no liquidity through which we can drive our own trades.
Here's the ASX price chart:
Tinybeans share price from ASX
Well, that looks exciting enough, why wouldn't we try to trade that? The answer is because of this:
The top loser on the Australian markets today has traded all of $34 worth of shares. There's just no liquidity there at all. It's even less interesting over on the OTC:
Tinybeans trade from OTCThe last trade of any size at all was a week ago.
Sure, there's all sorts of stuff happening at Tinybeans. The directors are coming and going, there's a $12 million market capitalisation. But there's no trade in TNY shares. Therefore it's just not possible for us to trade in and out to take advantage of the share price movements.
It's an irrelevance what Tinybeans does, even how well it does it. If trying to throw $34 into the market moves the price 21% - and recall, this is the largest loser on the market today - then there's just no point at all in trying to speculate here.
Which is a useful lesson. That a company exists, that it's on a market, doesn't mean that it's worth considering. Liquidity is a necessary precondition of something being worth trading.
