RE: who is the seller22 Mar 2015 14:17
Few points here.
1. The theory is a stale investor is dumping their 6-7 million shares because they need the money for another project that is burning cash. This is certainly why the SP has been subdued. We believe this seller has been dumping shares since last June. So if they had 6-7 million shares they must be running out of stock. The seller will normally pounce on any good news to dump stock. (Assuming one big seller.)
2. We are assuming a lot of the 50k, 100k and other similar rounded number sells are the stale investor. It is possible some small investors are just selling up to invest elsewhere or because they need the money.. There are a lot of small investors in Porta so it's not always 100% clear who the seller is. On days where good news comes out and you see a lot of sells this is normally a good indication a large investor is dumping stock.
3. I wouldn't assume the stock will surge once this process is complete. This will depend on how well the company is truly performing. So far all the recent trading updates have been very positive. Backed up also by director's buys. It's my opinion this share should be above 10p. Am I right? Well that is the risk of finanicial investments. They can go up and down. This share comes with a health warning but a very positive upside appears on the cards.
4. My final theory is that a bitter ex employee is dumping shares to subdue the share price to further their business interest. It's possible a third party wants to see this share price supressed. You can long and short a share. So could someone be gambling the share price will be going down to make money?
The positive thing here is the seller/s will eventually run out of stock to sell. In last 1-2 month I believe they have sold at least 1.5-2+ million shares alone. That can't go on forever. Especially if they have been doing this since June 2014.
Long term investors will see out this storm. As eventually the SP will match the actual performance of the company.