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If you’re day trading then the spread would be important but these types of stocks are too volatile and in short supply for sensible day trading. This stock is under-valued at current prices. Anyone savvy will hold all that they have and buy cheaper than they have done to reduce their average SP and optimise their future returns. BV Tech’s average SP on their declared 15.4m shares bought for cash is 19p. Any further unknown purchases by them will be bringing their average SP down further at these prices without the SP dropping to levels to attract others to buy cheaply interfering with them doing so. The 11.8m shares purchase at 8p was the biggest signal in keeping DFX solvent and achieving majority share-holding at a bargain price. That’s why I think that there is careful share management here that keeps the price below BV Tech’s average SP without it dropping too low so that they acquire shares cheaply and reduce their average SP. This is all consistent with a potential takeover. Or I may be completely wrong.

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The few trades are not a consequence of the large spread, it's the other way round. The spread depends on the total number of shares outstanding that are available to trade, demand in the stock and total trading activity of the stock. These are all small for DFX so the consequence is the large spread so the MMs can cover their costs, make their money and provide market liquidity for DFX stock. No-one sets a spread to entice you to buy or sell, it's the SP that matters. If it fell to <15p then I would buy as much as I could irrespective of whatever the spread was at the time.

Eerily quiet...

Definite manipulation keeping the sp low IMO and sucking up shares in batches better than a Dyson. It's inconceivable to me that any offer would be made until after August though after which the 52-week high price steadily diminishes. I guess it all depends how long operational funds last.

Strongman: yesterday you said we all know that the current sp is what we all know is the floor price; today you’re saying 11p or 12p will be. Yesterday you said you made two healthy buys, neither of which are recorded. Care to explain?

Fair points. My reading is that the sp is being held down by design and has probably reached bottom now. It was curious how several substantial sales last week did not cause the sp to deteriorate further and there were some peculiar buys of circa �20 that don't make much sense. It looks like behind the scenes manoeuvring to support the strategic aim of a buyout to me, consistent with BV Tech already being majority shareholder. There are many issues with the company that suggests a takeover is most likely to me. If I were BV Tech I'd want the products, contracts & IP and let go of the dysfunctionality that has led to the problems.

The Secured Convertible Bonds were valued at 200p per ordinary share but that expires in August. After that, as you say, the offer price must be no less than what they have paid for any shares since August. They steadily decline to 106p in September, 91p in October, 40p in November, and so on. I can't see any reason why they should time a takeover before August and needlessly make it at least twice as expensive for themselves than they need to.

What makes you think a takeover price would be as much as 200p?

The �1.2m was raised specifically because of �Defenx Group having insufficient funding to continue trading and start to implement its revised strategy, Defenx 2020�. It would be foolish to think �1.2m is just sat in the bank as a comfort blanket. They�re operational funds to finance the company�s day-to-day operating costs, replace all the Rome-based staff who have resigned, train up their successors in developing and supporting Defenx products, correct the technical performance issues that have led to unpaid invoices from customers, finance litigation, etc. The CFO, Philipp Prince is evidently a very smart guy, so I assume that he fully costed out his funding requirements to recover the company and provide a platform to go forward from. If so, that �1.2m will be all spoken for, ring-fenced and committed. If not, I foresee further funds being required prompting a further open offer prompting further share dilution and BV Tech acquiring even more of Defenx, else a total BV Tech buyout/takeover.

How would you see a takeover panning out?

It always moves fast, up and down, mainly down. It's a nano cap. That's what nano caps do. And many sellers selling what they bought at 8p or 9p are making a very healthy profit, even at these prices. No could/would/should talk will prompt sufficient investment for this to fly. The company needs a new Board, credible explanation of the imminent poor results (who knows what FY2018 looks like so far) and a credible strategy to change from the low fluttering it's been doing for half a year now.

...then dropped to 17 again. It's not going to make any solid and sustainable upwards trajectory until there is reason for anyone to invest.

How do you know there are loads more buyers coming?

Don't forget that it has reached as low as 9p in the past year. I foresee a bumpy ride until positive news, appointments and action are taken.

It looks to me that 8p offer holders think DFX has peaked so are taking their profits. The Board must take positive steps after the accounts are published at the end of this month to instigate a credible recovery though. It won't happen by itself. The false dawn with Peorio in November, turbulence in the Board room, loss of the founder, an FY loss, no CEO, etc., need firm and convincing remedial action.

ms_moneypenny - Indeed, that's what I said except for mis-classifying Stecconi as CFO instead of F&ED. In addition, Non-Executive Director, Franco Francione, resigned 6 months ago after a short time on the Board. Again, the results are yet to be published, a new CEO is again required having failed with Peorio whom Reeves appointed just 6 months ago as NE Chairman and assured us was part of the new winning team. The open offer was indeed at half price to keep DFX solvent (as stated in the press release) but it was not with the strategic objective to cripple the market cap and sp.

There will need to be substantive and positive news and action for the sp to climb. DFX have yet to publish their latest poor accounts. The CFO is going, the CEO of just 6 months is going, a 76-year old interim CEO will act up until a successor is appointed. Little to cheer as yet.

The terms of the open offer allowed BVT to continue to buy further shares above the 66% it could have had at the end of that. I know of no source that provides the current distribution of shareholding of a company. Notably, the 12-month lock-in expires at the end of this month so BVT will then be free to offload shares if it chooses. But it appears to be on a path of cheap acquisition.

My understanding from the RNS is that Rule 9 was waived only in respect of the open share offer so that BV Tech would be eligible to participate in it at the 8p price. If there were a takeover then Rule 9 would resume. If they have a takeover planned then they will obviously wait until after August when any shares they have been buying lately will have been at current low rates, close to their average purchase price. BV Tech appear to be on a trajectory of progressively increasing their % share. The market price does not appear to be affected by buying volumes: the price remains low whatever volume purchases are being made. BVT can increase their % by stealth by just buying shares at these bargain prices else make an offer after August unrestrained by Rule 9 and still pick it up cheap. Having ejected the founder and acquired majority shareholding, the end game looks like acquiring the whole company by whatever means is cheapest. In accordance with LSE Panel of Takeover and Mergers board rules, an investor who acquires, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100% of a UK Company, must, under the Companies Act 1985 Section 198, disclose their interests to the LSE and the company, within two days.