Today27 Jan 2021 23:44
Why did Alexei Churakov sell 27,400,00 ordinary shares?
Alexei Churakov owns a company called Venus Garden Holdings. 20th November 2017, Venus Garden Holdings subscribed £76,336 for 27,262,814 ordinary shares in Eurasia Mining PLC.
Coincidently, this number is almost identical to the volume of shares sold.
The reason for this may be that the potential buyer of Eurasia does not want another company or subsidiary having any ownership in Eurasia.
Alexei has been able to retain 12,282,774 as these are directly ties with Eurasia and not purchased as a subsidiary.
What caused the share price to drop so quickly?
By Mr Churakov selling a proportion of his holding caused the sale price to drop accordingly. Due to the large volume of shares sold, this triggered a quantity of investors' stop losses. The share price fell from £0.293 at an alarming rate nearly 50%.
Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.
With a snow ball effect of stop losses being triggered, the sale price dropped at a lighting speed until finally resting at £0.15.
At 16:25, the share price finally started to crawl upwards from the traumatic dive, but the trading day ceased after two price monitoring extensions at £0.18. Many investors saw the opportunity to purchase in-demand shares at a cheaper than expected price and this has aided the share price from falling any lower.
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