Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Good morning.
Please refer to my post yesterday at 15:17 that gives reasoned opinion why the SP should meander its way to 4.2p+ while awaiting news. I’ll return to this but first a few comments on yesterday’s posts:
MM ‘manipulation’: market makers provide liquidity, make a percentage on the spread, want volume and don’t care which way a SP goes as long as they make profit. However 2 of the 8 MMs (SCAP and INV) are BPC’s joint brokers which gives the opportunity for ‘share-price shepherding.’ There is a high probability this happened during the Trafalgar dumping to avoid the SP ending below 2p at EOD. SCAP were top of the MM list for days on end buying up BPC shares, possibly on behalf of a 3rd party.
Day Traders: There are two types, amateur and professional. The latter use CFDs, derivatives and some have direct market access to avoid the MM spread. During low trading volumes assuming a trader has a few million shares or intends to do so, they can bet on the outcome in a self-fulfilling prophecy. Even to bet against themselves leveraging a CFD vs shares owned and profiting from the difference. However there are 5 risks:
1. They cannot predict volume or if new PIs or whales decide to buy on the same day.
2. They cannot predict if MMs will intervene (I prefer the word ‘shepherd’)….see above.
3. They do not know if other traders have the opposite plan.
4. They could lose a LOT of money in a few days.
5. The 5th additional risk is for the amateur day traders who buy/sell using dips and waves. They have to take into account 10-20% MM’s sell/buy spread before making a penny in profit.
Shorting BPC: IMHO to do so now is extremely unwise and risky for the following reasons:
1. Everything I have stated above.
2. There are no CLNs creating SP downward pressure.
3. There is an expectation of positive new-flow. Even a bombardment of RNSs.
4. All the evidence points to whales being in the water. It is unlikely these whales are wealthy day traders buying via MMs at premium prices in one go and sacrificing a large percentage of the usual 10-20% planned profit margin out of laziness.
5. KEY POINT: Refer to my post yesterday at 15:17 that gives reasoned opinion why the SP should meander its way to 4.2p+ while awaiting news.
Bottom line: It is not for me to give unsolicited advice to professional or amateur day traders or anyone, however if I have read the situation correctly, IMHO to short BPC now could result in substantial losses. But I may be wrong. CONVICTION STRONG BUY. DYOR.
Starchild
xxx