Today's trades25 Oct 2018 19:15
Interesting trades today.
Bought 9,566,435.
Sold 2,158,351
7,408,084 more shares bought by investors than sold today.
Given that before today it was rare that you could pick up shares in large amounts for weeks on end then it was likely the MM's books were already in negative territory. After today, they are quite likely short to the tune of 10 million shares.
Not to worry, the placing will resolve that I guess... but at what price? The non-existent shares (check when your shares are actually delivered buyers) the MM's parted with today went for between 1.54p and 1.69p so the MM's are going to want to replenish at less than say 1.6p to make a profit.
How might they do that?
1. Be part of the placing at 1.5p if that is legal (Chinese walls would suggest not)
2. Hold the price low (around the 1.5p mark) and hope that large numbers of sells appear... which today they did not.
What can't they easily do?
Move the sale price up much above 1.5p. If they do, placees can sell ahead of receipt of shares and profit before even handing over their money.
The MM's could easily end up with many tens, if not hundreds, of millions of shares on their books which might be too much risk for them.
So, the MM's appear to be stuck in a holding pattern around a 1.5p sell price which, unless the spread becomes utterly ridiculous, gives would be buyers a very good chance of building up a significant holding around the 1.55p mark.
I wouldn't mind betting on Mr TB loading up again at this time. It's the kind of sneaky thing he might do.
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