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Even though the directors don't need the money, the thought of the harm that the short positions are doing to my family’s company would make me want to burn them all.
A stealth buy, followed by an announcement of £50m director buy, would do it. The short position would be trying to close out their positions in an environment where no one would be selling shares... but the shorts would have to close...
Plus the directors £50m investment would be worth £500m, if the share price got to 350p, so not a bad bit of work...
I read this, got me to thinking...
Pharmaceutical company- "this medicine cost me $3 to make, but I'm able to sell it to the sick for $300, because I know they can't refuse to buy it.
Rich people- "that's a smart business move"
Reddit user- these game shop shares costs me $3, i'm going to sell them to short sellers for $300, because I know they can't refuse to buy it.
Rich people- "The horror!! The government must put a stop to this"
The directors of BOO, along with their rich pals or a large group of holders adding, could quite easily do this. It wouldn't cost that much (in relative terms) at 50p per share.
To close, their current 10% short position, it would see the short position holders needing to buy 65,000,00 shares, why not make this 400p per share? And become an expensive shopping trip for them.
Just saying...
37p, because it is a big game. Barclays have shares to lend out to shorters on leverage. If they didn't announce that the shares could get to 37p, there would be no takers to borrow Barclays shares!
The share price can't climb if there's a wall of sales at the live price and limit sells at just below live price, If I am selling my shares on a limit order at 40p and my shares sell, then 40p is the new price, it hasn't got much else to do with anything other than that. As BOO is much bigger than it was in 2017 (or when ever it was), when we last saw these prices
Then the confidence has been eroded in most shares, as everyone is eating a giant **** sandwich at the moment. The 8% short has done the damage, now a further 0.2% short position can move the market downwards as there isn't 0.4% of money to buy (go long) to counter the short.
1% of long positions 13m shares (£5.5m) would turn this the other way. If I were the Kamani family and the other directors, I would take this personally, I would say, if I'm not welcome in this market, I will make the institutions pay. I would set up a company, not affiliated to BOO HOO, I would lend this company money with personal funds, that way they couldn't be accused of any conflict of interest or using BOO HOO's money etc. Then from this company I would hoover up all of the shares at these low ball prices. It would cost the Kamani family £10,000,000 loan to this company, £10m would buy 20m shares (at current prices) use this £10m to buy at each level, starting at 44p, then 45p etc etc eventually getting the shares back to somewhere better than this and if it got to 430p per share, their new company would be worth £100,000,000 i.e. the wealth would have risen by 900% from today, plus all of their existing director holdings would be worth what it was a year ago. The BOO HOO directors would be able to borrow against their assets, as the loan to value would be favourable and then could offset this loan against profit, that wouldn't impact the share price as much as directors selling shares into the market. NO long position would consider selling if the price was rising, eventually the short positions with their leverage and their buy back and the inability to borrow more shares would wipe them out.
It seems the institutions and media love to build someone up, just to take them down. Once the value of BOO gets back the past value, If I were the directors, I would list my company on NYSE, where they appreciate entrepreneurs. I'd happily jump on the directors coat tails, but my £20,000 isn't making a difference by itself!
I don't know where PFC is headed! However this 1 min system works well on PFC, you can get a keen market price on PFC with bigger stakes 30-40k.
IQE you are buying 0.25p more and selling for 0.25p less with more than 10k stake.
I've put TCM in there, the spread is on the limits, but it moves enough.
I'm going to see what KOOVS does in the morning, if I can get sub 22p, I will probably buy in and shut up shop for summer.
Hi Scully
This is a representative of 1 years worth of research!
I gravitate to a certain few. Spreads change all the while, and companies move into FTSE 100 so have a quick check. Companies can be in the FTSE 100 and are incorporated out of the UK, so are not subject to stamp, as in PFC and RRS
IQE
Petrofac
BooHoo
Randgold Resources
ASOS
Scapa
Redde
Plus 500
Iomart Group
Highland Gold Mining
Fevertree
CVS
Clinigen group
Abcam
Keywords Studio
Telit
Hi Spencer
You won't be able to day trade KOOV, the spread is too large, it has to move 2.63% + your trading costs before you're in profit. You might get this movement tomorrow but thats the exception and not the rule. My buy and sell costs are £13, if my stake is £10,000, that's 0.13%, so in total it has to rise by 2.76%. Like everyone else has said, lump in KOOV and wait for the fireworks to happen.
That said, there are 15-20 or so shares that have a tiny spreads, no stamp duty, and volatile enough so the movement doesn't need to be that big to be in profit.
What system works well for me is 1 minute candle chart, set moving average line to 10 candle. When an adjacent candle opens higher than the close of the previous candle, I buy, you could wait for the candle to cross the 10 candle moving average line, it's confirmation of the movement/momentum. I hold until the open of the following candle, opens below the close of the previous candle and gets confirmed by crossing the 10 candle moving average line. It works 15 times out of 20 trades. If the movement doesn't work out, you can usually get away with with breaking even, unless the following candle falls off a cliff! Generally the market moves sideways, ebbing or flowing with the adjacent candle within the range of the previous candle, when there is a gap up or a gap down the following next 20 minutes will show movement. If you think about it, the adjacent candle has only gaped up because people are massively buying or it has gaped down because people are dumping.
If the adjacent candle opens significantly higher than the close of the previous candle, it demonstrates a strong positive momentum and if this momentum can continue I stay in. I try making 1.2% per day sometimes over 6 x 0.2% trades. Sometimes it takes 30 minutes, some times I'm looking at screens all day, waiting for a signal and nothing. Sometimes I've made 1.2% in a company, that has fallen 3.7% on the day (PFC the other week) as it rarely falls in a straight line, it rallies, creating a chart with lower lows as the time ticks. NOTE if you achieve 1% per day and you reinvest for 260 trading days (MON to FRI for 1 year) you will have made 1266% with the compounding effect and not just 260% @1% per day (google compounding).
Sometimes, it keeps on going up, then I let other signals take over, such as MACD, Ichimoku, set my candles to 5 minutes, with a 20 candle moving average line, this way I won't sell on false downward signals, this helps to max out on profits. NOTE if the moving average line is rising, it's easier to trade than if the moving average line is falling as in PFC the other week.
The charts are populated by buys and sells, so you're just following the money in or out. To be honest, if you buy something that's cheap enough, BOO @ 170p, IQE @ 96p, PFC @ 450p, KOOV @ 24p it isn't worth risking trading and missing the jump. I just buy, set 5 min candle, 20 candle moving average and keep an eye on it.
12m shares traded and up 4.42%, i'll take those stats all day long. Been watching lev 2, it's a joy to see that there doesn't seem to be any fear in hoovering up the surplus shares. The last open market trade of the day was 50,000 at 211.03p
12m shares traded and up 4.31%, i'll take those stats all day long. Been watching lev 2, it's a joy to see that there doesn't seem to be any fear in hoovering up the surplus shares. The last open market trade of the day was 50,000 at 211.03p
The director has done more to damage the value of BOO than all the good BOO has done since the last results. It makes a mockery of all the experts trawling over all the snippets of information as to why the value of a company is such, because with the press of the sell button all the good has been wiped out, all a bit fool hardy, in my opinion. History dictates when a director sells, the market hates it and the share price always drops significantly. A £3m sell, wipes £300m from the value of his company, so in turn, this has affected all the fellow directors, the employees, the shares holders, the potential new investors and only really benefits the one director. If the directors didn't sell, the share price could be on the way to 270p and it would benefit the fellow directors, the employees, the shares holders and ultimately the director because his shares are now valued at 20% more than he sold them. Then if the company is worth more, He could negotiate a pay rise on the back of it, because £900,000 per year isn't enough! If the director still really need to sell, he should sell further down the line, not the day after results, when the whole world is watching. No one is talking about how good BOO HOO results are now, they are talking about why did this guy sell, what does he know... The director has proved Robot and his elk right, because DROP it did and prove Thorpy and Jambon wrong, which is more the pity...