RE: Bullish price action17 Mar 2021 09:47
A "tree shake" is a tactic used by the market makers whereby they drop the "bid" or the "sell" price of any share normally quickly and successively with low trades and in order to lower the share price and generate sells / volume. It's done that way in the hope of spooking investors into selling their shares. Quick successive small sales, tease out some sells, then the same again, until they get what they wan't. It also enables them to take out any shares that have set stop losses as which they can see them and target them for stock. They can on some occasions even last a few days.
At the same time though you you find that they, the market makers, limit the ability of anyone to buy big amounts and to let them also take advantage of the drop. Short sellers can mimic tha tactic but the difference is that they, the short sellers, don't have the ability to control the amount that you can buy.
The most incidentally that, they the market makers, would let you buy this morning on a live quote and without Negotiated Trade was £5k so my buys had to be split up.
Ultimately all short sold stock has to be bought back and you have the likes of Morgan Stanley and others in the market picking up stock that can see that HMSO is valued presently at less than half its bare bricks and mortar assets. That being as we move forward to all UK shops reopening on 12th April and back to a steady flow of rents. It also represents a nice additional 5% shares bonus if you elect for the scrip dividend and hold the shares on the ex dividend date of the 1st April.
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