The details of the Abraham loan are equally as vague as the IOP merger but nobody seems concerned about it.. Why haven't they nominated two NED's as per the terms of the agreement, they own 15% of the company and with future warrant options this could become more than 20% assuming the shares in issue remain the same. I for one would like to know who's behind this benevolent benefactor who now potentially own 20% of RRL.
I think in the IOP days, there were only a handful of people who saw the dangers. Novice, MKdon, you, me are the ones that came to mind whilst most on here were patting each other's back trumpeting the great dealmaker that was PL. The concern was, there was no money and no synergy. Bad merger in any M&A textbook.
It also led me to sell my remaining shares (only worth few hundred quid) here after some prompting by DBW. lol.
someone suggested me that in this era of high frequency trading, and where a normal PI can buy/sell shares on single click of mouse from anywhere in the world...the best traders are monkeys and have been proved by some experiments..so I am not going to read anything related to financial market, happy with my engineering degree, and happy to trade on gut feelings.
You can watch them do it at times using DMA to manipulate the book - basically you need a low volume day and also have to hope there is no one bigger who wants it to go the other way! By firing a quick burst of DMA (a trades) at either side of the book - the sell side if you want to take it up - you can cause a disproportionate rise for the amount that you have to buy (if it is a low volume day the book is often quite thin and a big chunk can be removed with a quick blast). At the same time you add large supporting orders onto the buy side of the book to help push that up. Plenty of traders have alerts for any sudden spike in price and volume and will spot it is rising fast and will jump in - this creates a snowball effect and once you've got it going you can just sit back and carefully sell into the rise (you'd have stocked up in your normal account before you caused the rise and can then sell those in smaller blocks inside the spread via 'o' trade - plus of course carefully offloading the long positions you bought via DMA to cause the rise. Even if you don't make a profit on the DMA positions it doesn't matter as they're purpose was to cause the rise so as to make a profit on your other physical share holding. I'm no expert though and only going on what I have observed happen on a number of shares!
Its often easier though when you're on the outside looking in as i often was, and even when i was in it was just for a trade (certainly since early 2011 anyway). There have been other shares that I've held onto myself (BLVN for example) despite things not going to plan - I traded the hell out of that one with my trading pot yet only sold and re-bought a couple of times with my long term holding (got out in the low 90s and then made the mistake of re-buying in the mid 70s, and ended up selling the lot on the farm out spike to 46p recently - with my original buy price on those at around 61p and the profit I'd taken it worked out that I'd held them for a couple of years just to break-even in the end!). The lack of detail on the important bits of the IOP merger always bothered me and the detail that was given was vague enough that they could skirt around it at a later date. There were certainly others as well as myself who didn't like it at the time - I know you're well up on the legal/contract side of things (or certainly seem to be from what I've read of your posts over the years) and know you had your own misgivings, as did others like Carvegyber!
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