That depends on the price per share. ASOS did a traditional placing at just above its SP in the 7/8 April 2020 and the SP leapt, to keep going up afterwards. Existing large holders are also supposed to be asked to help too, so they may not want to see the value of their existing holdings go down. It’s different from a placing to a broker that will just resell shares quickly. Here, it’s a sale to people who are planning to hold onto their shares. But let’s see what the deal is tomorrow morning.
Read the Sig website with the list of major holders. However the free float is of little significance on this case: the same shares could change hands several times. Instead, use a 5min intraday chart tomorrow, to determine the likely direction of the SP, and look at the trading volume as well to help you decide how likely the movements of the SP are to be sustained or be all over the place (“choppy”) if the volume is not big enough.
RE: Ignore posts, just read RNSs, real news and watch SP trend.28 May 2020 09:48
Todd1234 - Many thanks and I sincerely hope you are right (you have been consistent in your remarks for the past weeks), but with all due respect, without evidence, you could be anyone making this up. Obviously, you are legally obliged not to reveal price sensitive info so you cannot provide such evidence in the first place (except for info already in the public domain). So again, the only thing on which we can base our trading or investment decision is what I listed in the first post of this thread. Good luck to you and all holders (incl me!).
Ignore posts, just read RNSs, real news and watch SP trend.28 May 2020 09:35
About everyone (me included) knows nothing more about this company than what has been posted in the RNSs and the general news (incl. opening of new distribution centre near Heathrow and the relatively early reopening of the construction sector in the UK and Europe). And watch the watch rise (albeit very choppy) of this share since April.
Make your mind based on that info, not people's speculation and guesswork. Otherwise, you are likely to be very disappointed.
Nobody is confident of the fair value without the full results. However, a 70% (very roughly) reduction in the SP since all the poor news announcements of last winter looks ridiculously disproportionate, even taking into account the temporary impact of Covid-19. Can we honestly say that the Sig is worth only a 1/3 - 1/4 of what it was in January / February? That looks very very very unlikely.
Assuming "offer" = "ask" for you (please answer questions to help communication please!), then what you described has never happened in my experience of dealing with thousands of shares. Sometimes (rarely though) the bid is at the same level or above the ask, but it's barely above it. Usually when exceedingly high demand for the shares and then market makers / IIs are desperate for holders to sell them their shares so they can meet the demand.
Never ever ever have I seen the bid to be higher "by a lot" than the ask.
The amount of report shorts on a share are rarely a good indicator. As Poorinvestor2 points out, it could just be a hedge for example. It's only when a share is one of the most shorted on the FTSE, or when a lot of short positions have been added within a short amount of time, that alarm bells should ring.
David Burton is probably a paid pumper / dumper. He was promoting AML at 50 A few weeks back and it tanked below 30 about 1-2 weeks later. Calling a “top journo” a Mail on Sunday rumour monger (Remember the claim that Amazon was in talks to buy the owner of Odeon cinemas?!) is another example that he has no credibility.
RE: Volume fading, 17p double bottom?22 May 2020 15:25
Without a proper chart and/or clear financial data, that's just figures in the air.
If you look at a daily candlestick chart, you will see that we had a pinbar / hammer pattern yesterday, and one appears to be forming (just about) today. At the bottom of a downtrend (since 11 May), that hammer / pinbar is a bullish sign indicating a likely (but not certain!) reversal.
We have also seen how a lot of this early afternoon's sales were probably stop losses triggered by a decrease of the bid (i.e. the "AT" / automatic wave of trades in early afternoon). Again, that's not certain, but a real probability. Which would suggest a deliberate attempt to stop a clear return to an uptrend. An attempt which appears to be failing, the SP has not been tanking like it could have.
"If there is a seller then there is a buyer - makes sense that's how the market works. "
Unfortunately that adage is fundamentally wrong when talking about the stock market.
A "market maker" is an institution that is contractually obliged to buy and sell shares, whether it wants to or not. As its name implies, it "makes" a market. So even if a company is sh i t and tanking (which is NOT the case here), a market maker is forced to accept to buy its shares, albeit at a price that it can set (within a set of contractually defined limits). https://www.investopedia.com/terms/m/marketmaker.asp