RE: Anyone like an9 Nov 2018 03:30
YTSS - well of course any drop in price is an opportunity to buy. But the MMs don't generally drop the price when they think buyers are waiting patiently for good deals - they do it so that they can buy from PIs at lower prices than they would otherwise have to.
Think about it like this - if buying patterns are more intermittent than selling patterns then if you are a market maker what is your best strategy ?
Answer - survive the short term buying pressure by selling shares you don't yet have, keeping the selling price high, then when that tails off walk the price back down so that you can buy the shares you need at lower prices than you just sold them for. This results in the MMs running with a short position - quite literally they are 'short' or the shares that they need.
The recent huge demand for shares forced the Market Makers to have to resort to push the price up over 30p - this, perhaps combined with a phonecall to whoever held the Atlas warrants (they can be sold on without having to notify anyone) has resulted in the last of the Atlas warrants being knocked out of the game.
The precise price that the warrant holders get for their warranted shares depends on the exact time that the warranted shares are sold into the market. The Market Maker that is handling the warranted shares, and which is probably also the one that has been running the short position would dearly love to pay the minimum for those shares which is why they needed to engineer yesterday's drop.
They will see if they can pick up any cheap shares from spooked PIs, then will then drop as many warrants as they can in, until they have filled their pockets - thus taking the warrant holder for a bit of a ride (so what they only paid 13.84p for their shares). Once they have done that the SP will move up again, and now perhaps at an even faster rate.
The buying opportunity may be short lived.
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