Member Info for DestituteBroker

No news, most likely Pro’s reconciling positions, prior to a pullback ?

MD, you are coming to the wrong conclusions. The company is not controlling the share price & not instructing anyone to sell. Sorry if my post wasn’t clear enough.

MD hi, ask any of the LTH’s this was fully discussed on this bb years ago. It must have been prior to your involvement. Anyone can acquire a large holding in a company & sell as they wish, notification is only required if the holding is above 3% of the issue. The price / quantity will not be pre agreed. The company has informed it’s shareholders in an RNS. The holdings show up in the nominee accounts & in the accounts as an asset. In general the original reason for company’s listing in markets is funding. Many stocks raise funds via these methods from time to time. Hur & UKOG are in the process, PMO is restructuring debt which it is said will impact shareholders in March. This is part of the risk management of holding stocks.

Hi MD, no it is not to control the sp, just sell the shares into the market. I’m sure everyone involved would like to see a higher sp. Less shares would need to be sold at a higher price but that comes down to the time frame available. Continuous dilution does have an effect though.

Hi MD, the contracts are not at fault, they are simply doing as they are contracted to do, same as Crede etc. The Crede method differed slightly, grate for trading, but PI’s didn’t like that. This is the cheapest method & has the least impact on the share price. However it does have it’s consequences, as you are aware. Similar to watching paint dry. Rights issues are costly to implement & can cause Gaps down in the share price. As you will be aware from last years interim results, 1bn shares was requested for issuance & will be issued as required over the coming years. Obviously an effort has been made to lesson the impact of this with the income investment, to contribute to the increased liabilities. This is the business model & it will not change until takeover or something else occurs.

Hi etank, historically if you look through the RNS’s going back to Crede etc, you will find that some of the recent placing contracts have been cut short for various reasons, with moneys returned. My guess is lack of traded volume, within a given time period. The balance being passed to the next contractor, sometimes the contracts overlap. The answer is simply the nominee account data. Some accounts are used by the contractors. If you keep a Monthly account, you can track the progress. Dicky keeps a methodical record, if you ask him he might post a link for you. Re side-channels, if your trading I would recommend that you think about that long & hard. Side-channels are Market Makers preferred price action. There’s a lot of work goes into managing a side-channel. It doesn’t occur randomly & it’s not just a case of balancing at the end of the day.

Hi etank, my remark was in relation to ivans comment around, hoping that the sellers have left the building. You asked an open question. I assume that you are up to speed with the current circumstances. In general, as stocks move on supply & demand, ie up, side-channel or down, what happens if there is continues supply ?

No sorry, last years allocation has still some way to go yet, before this years starts. If you want conformation look through the RNS’s & do da maths. Hope that’s helpful.

There appears to be a disconnect between the Oil price & the stocks. Not exactly racing to new highs are they. BP is doon. Is Oil well over priced & the Pro’s know it ?

Good graph Geng, does the dog wag the tail or does the tail wag the dog ? lets hope the graph wags the algo.

This is a wonderful achievement for the disadvantaged retail investor. It involved a number of stocks, which were heavily shorted by Hedge Funds. In some cases 130% + of the stock was shorted. That’s more shorts than shares in issue, as the stock was lent out multiple times. A large group of PI’s communicating on social media, bought the stocks, one stock rose around 1800%. One PI made $11m in one day. This has sent shock waves through the Hedge Fund industry. Some have incurred billions of losses, as they were forced to buy the stock at the high prices to close their positions. Now the issue of closing the loophole, as the money is only supposed to flow one way & that’s not in the direction of PI’s, that’s where the profits for the industry originate from.

Hi, 40 years is impressive to say the least & a tad longer than me. Do you have an interesting story about ‘the company over here that’s doing rather well over there’ Hansen ?

Crunch543 hi, in general this is similar to a shop counter with the general public on one side feeding the money & the industry trained professionals on the other, extracting the money. The psychology is that Retail only see what they want to see ie the industry marketing in it’s various forms, which gives them a simplistic view, ‘investing’. Even though overtime they realise that this is not the full picture & that there is something else occurring in the background, they prefer to keep the blinkers on, because that’s the easy option. What is really going on is far more complex, but they have no interest in that, to the benefit of the industry.

Crunch543, that’s a good one. PMO is currently in a reverse takeover, it has a market cap of £197m, $2.7 billion of debt of which $1.23bn is to be paid to the Bond holders in yes you’ve guess it, new shares. A broker that you will be familiar with has stated that they may be wiped out. But PI’s on the bb think that they will receive between 35p to 53p per share. I have highlighted the additional issue with issuing Bondholders shares. PI’s are in their own little world but that’s the way the industry like it.

Is this the only stock in the market to increase almost daily on virtually zero ‘value’ traded ? Must be a Quant’s dream. Keep pulling da strings Lads.

Back to the 2p ‘default’ price side-channel, what a surprise. Too risky to take a bit higher ?, go on give the strings a tug. I’m sure PI’s will promise not to sell.

Prior to this years share dilution commencing. Nothing else, wise up. Were in the business of selling shares. This is the stock market.

Pearls, yes same paten each day, this is gradual Price-Decay. As the money is professionally worked out from the October 10.77 low, trader bounce. When will it end, when the position is depleted & fully sold into the PI nominee accounts, over the coming Weeks.

Do you understand about Bond Holders ? Corporate Bonds are usually bought by pension funds etc for ‘income’ & preference, as less risky than common stock. In most of these cases when they have to receive shares, that they don’t want, they sell them. This action can cause Price-Decay, as the shares are offloaded onto unknowing PI’s, trying to catch the bottom. An example of gradual price decay is the graph between June to November last year. This occurred after the trading bounce, as the profit is professionally worked out. After the re rate ‘if’ the Bond Holders start selling whatever proportion of the $1.23bn that they have received in shares, I would expect to see price decay for many many Months. The stock market is all about managing ‘unknown risk’. Market makers straddle the mid price with small volume quotes for good reason, they are managing risk.

PMO’s current market cap is £184m with $2.7bn of debt of which $1.23bn is to be paid off in the merger. So you think that Chrysaor’s private shareholders are not only going to fund this debt repayment but reallocate value to PMO shareholders, so they realise a premium to the current share price. Well, PI’s must be 10 steps ahead of the City on this one. Because looking at the current share price, that just doesn’t make sense. Why do you assume PMO shareholders are to be rewarded. 5.45% of PMO’s market cap is a nominal base value at around a ‘penny’ a share & I think that that is more realistic & even that may not be achieved but maybe the stock market does work on a charity business model. It will be an interesting few Months on this bb.