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This share action is an excellent example of how the current stock market works. With a 40 pence base price for about 15 years, the stock has recently been shorted down to 6.5 & 5.5 pence. With Pro’s primarily focused on shorting & fear of investment, continually shorting to extracting money off each other & everyone else. There has been no attempt to ‘invest’ with a long term view of increasing the share price. The result is that ever one involved will receive a fraction of what the company could have been worth. In this case shorting stands for short sightedness & short changed.

12.9p for the worlds 4th largest platinum producer. Pro’s commonly achieve 100% on their high risk investment, so not surprising to see the offer at 100% above the 6.5p low. Also interesting that there is still massive buying @ 11.25, is this short covering or is there the possibility of a counter offer ?

If they achieved 450m Rand, that would equate to about £21.6m. A nice addition to the balance sheet.

Short selling is one of the biggest secrets of the market. Most of Pro’s trades- market makers / prop desks, in a rising market & falling market is short selling of different types. Pro’s don’t invest they constantly extract money, this is why stocks don’t rise. On the 9th Sept the DAX index was up 2.24% with 10m shares traded, The FT100 was up 1.92% with 73m shares traded. Why the volume disparity, because of all the short selling & general selling on the UK market. Chinese hedge funds have record shorts on commodities, Genel recently mothballed it’s copper mine division.

A Pro sold a lot of stock, the end of day UT was minus 10m. The fact that the stock only fell 15% indicates that there was also a lot of buying. This is going to happen with a stock with 1.5bn shares in issue. From a volume perspective it would only take a £100k buy to move the sp 100% but shorter’s & sellers wont allow that- in the short term.

Sorry wrong share [agq] but we may see this here one day

Now there’s a post for you !

This share trades like an FT100 share because of the volume available ie 1m shares traded x a 0.5p move = £5k profit. Very attractive to Pros that can trade at 5p a time & with no stamp to pay. Even better if your receiving exchange commission. Regarding the fundamentals, obviously the management are out of their depth.

Profit taking- looks like some Pro traders are getting tired of the games.

Commodity imports show a slight increase. Platinum $1029

At $1018.00

Reached thanks to Investec, may be difficult for shorter’s to cover shorts below this level now, unless sellers can be spooked into selling. The block cost about £16k, interesting maths !.

This stock is being heavily played by Pro Algo’s, scalping daily rises & as a result a rising trend will be gradual & take time. Unless any interested parties get tired of having their investment milked & decide to walk away. Mervingoose looks like your first out of the door.

Due to the fall in commodities this is under the radar, that’s the way the Pro’s like it, so that they can buy in at a heavily discounted price, but it will start to get noticed now. Then it will be ‘in-play’.

Medium to long term invest with a 6 Month horizon, 100% gain by year end & the HFT’s will bounce this on the way up.

Another day of massive volume in & out for peanut profits, when will the Pro’s take the brake off this stock & let it rise ? It is possible to make capital gains without the need for cost pound averaging small amounts ! We will just have to wait until someone has finished accumulating stock at the lows.

Bid 6.71 / Offer 7 & 7p being bought !

This morning after being shorted down the spread was 0.7%. At 09:12 an AT buy came in at 6.72 & flashed the stock up 3.5%., followed of cause by sales. Later buys came in so the Market Maker opened the spread up to a massive 2%, bid 6.57 / offer 6.7. This halted the rise & thus more sales came in. You can draw your own conclusions but most of the time if a market maker has sold short he will want the stock price to decline in the hope that a sellers stock will cover his short. All part of the business model & unfortunately not in investors interest.

Setting up for a rise….?

This stock trades like an FT100 stock, massive volume & virtually no movement. Too expensive for Pi’s to do these micro trades, yet too small a reward for Pro’s to manually monitor it, bizarre ! It’s a grind to 7p but looks as though we might be getting there. Sector capx reduced, increases the chance of M&A & no new production coming on line. Global manufacturing good & improving, at some point the shorts will be coming off commodities. At present this is being used to replace QE.