RE: I wonder8 Dec 2015 12:21
Hi FK1, agree and disagree.
The actual spread tighter than indicated by the bid and offer but the indicated bid and offer can also be used to trigger stop losses, if driving the bid down or buy orders of you take the bid with it.
All too many times the MMs have walked the bid down looking to trigger sells but left offer.
The FLX is indicated down 10%
Then a few sells go through and before you know it, FLX is blue.
This in part down to poor liquidity but when you watch the bid dropping every half an hour in a perfect step formation on the chart, fishing for sells, you know any sells will be followed by the by order which probably triggered the artificial fall.
The fun and games will really start when there's news. It's a binary bet, the next RNS could be a trading update with a huge uptake with enquires being converted to contracts. Or it could be a fund raise, I've worked out they've got enough funds without needing to resort to a fundraise until March 2016, until then, any decent contract could put enough in the bank to keep dilution at bay permanently.