Member Info for GingerHippo

This is nothing. Back in the day they would drop us 20+% in a matter of minutes. Look where we are today.

Look, horse I’ll be a little kinder sonde you’re new to the share. I get that it always hurts to be down. But that’s what happens almost any time you buy into anything. It almost always takes time to show profit because a) the spread, charges etc and b) it’s almost impossible to buy at the very bottom. MMs need to keep liquidity so they move the price around. That’s just a fact of investing.

Horse, a share that was 3p a year ago and is now at 35p can reasonably be called in an uptrend in my humble opinion. I know because I bought more than a week ago.

The other week my team was 5-0 up in the footy. Then the opposition scored a goal in the 89th minute. I panicked. They were catching up. I mean, it's not a casino, our team should be better than this. I started screaming at our manager. What a piece of rubbish to allow our team to concede a goal!

Strange thing was, other fans didn't like my attitude. I can't imagine why. The other team scored didn't they? Why don't they like me?

Goat. Price fluctuations are to be expected. The general trend is decidedly upwards.

People with a boohoohoo, moany attitude probably should be investing at all. Better yet, become a shorter or a paid basher. Hey, wait a minute........................

Frankly if this price action is too much you to bear, investing in stocks is probably not for you.

Well someone's trying hard to get on the lump of coal list...........

Last Xmas we were at 3p.
This Xmas 35.5p with a good chance for a large uplift any day.

You could sell and have 10 bags. Oh what's that, you're not selling because you believe in the BoD and think the FSP will be concluded for more than 35p soon...............? Well alright then. Glad that's settled.

Based on the sp I have 1% confidence, but I need to adjust for the following:

* The BoD are major shareholders. They don't get paid till we get paid. +50%
* UBS are involved on a success-fee basis. They don't get paid till we get paid. +30%
* DLA Piper are involved. It would do their reputation harm if this doesn't get done. +10%
* We were added to the MSCI index. It would do their reputation harm if this doesn't get done. +9%

So, yeah. Fairly confident overall.

Dickie, it's moments like this I wish LSE allowed GIFs...... lol

In any case you're wrong. Turns out I was staring at the back of my hand. Nice to be told it's mega

Please let's not start this again. The assumption that 'company transaction' means us was very distracting a month ago. There's really no reason to assume it's about us.

What am I looking at here?

If the only reason BR were buying was because the fund size itself increased due to increased investment, that increase must be massive.

If eua was 1% of the index (it’s actually far less), an increase of almost £600K these last 2 weeks would imply an increase of the fund size of £60M in 2 weeks, almost a 10% increase for BR MSCI fund.

They must be selling something to buy here. Presumably they sell shares that have gone up to buy those that have gone down.

I’m sure it doesn’t cost them much at all to do this.

As I understand it, the index states the %s as at 30 Nov. This won’t change until 28 Feb no matter what happens to the sp.

In the simplistic example above, the index won’t now say the ratio should be 3:1, it remains 1:1. So it’s up to the fund to rebalance in the meantime.

That’s my understanding.

Let’s say there were only 2 shares in the index as you said, each worth £100. The index says have 50% of your money in each. Next day 1 of them drops 50% while the other gains 100%. The fund is the same size but now has a 3:1 ratio instead of a 1:1 ratio. It will therefore need to sell half of A to double up on B to comply with the index.

3 months later the index will change its weighting and the fund will follow suit, but the fund needs to rebalance quicker than that.

From https://www.lynalden.com/equal-weighted-index-funds/#:~:text=Indices%20that%20are%20weighted%20by,to%20these%20higher%2Dvalue%20companies.

indices that are weighted equally are inherently value-based. The index fund is divided equally between all companies that are included in the index, so when shares of company A go up and shares of company B go down, the fund has to sell some shares of Company A and buy some shares of Company B in order to balance it equally again.

Since the MSCI index is not being rebalanced for another 3 months, right now the fund has to buy/sell to keep up with a fund that is not changing it's weighting

The index only get rebalanced every quarter. The fund changes every day depending on sp so has to rebalance more regularly to match it.

@Amanensia, if the price of one of the constituents drops the weighting of the index will be wrong so they need to buy more to balance it.

You do make a good point. They also have to buy/sell when investors add or withdraw from the funds.

@HapyScot, what I'm trying to point out is that BR buying is a direct result of the drop in sp because they are following the index, as others have said. Therefore the lower the sp the more they have to buy to keep the correct weighting. So it's not something to be happy about every day.

But, the fact that funds are here is good for us PIs, as I said before.

If you're talking to me, Amanesia, no of course not. I never said BR are actively trading. BR are almost certainly using algorithms.

I said there are active funds (ie other than BR's index trackers) that have bought in, which is positive.

This hardly has to be a point of contention since it is completely moot and unimportant to us PIs.

The funds being on board makes the stock less volatile for this reason. As the price goes down there is more demand from the funds to buy. So it is less likely to be **** dropped the more funds are involved. This in turn makes it less likely that there will be a bear raid targeting stop losses or panic selling from PIs.