£6M Uncrossing Trade20 Jun 2021 11:13
By-and-large, after-hours trading is the favoured domain of the institutions. Effectively, what is happening is that market-makers are matching relatively large institutional buy and sell orders. Now this could take days or EVEN WEEKS to do depending on the LIQUIDITY OF THE STOCK. So, rather than having such large orders queued on dealing screens and visibly hanging over the market during ‘normal’ trading hours for all to see, market-makers put such orders to one side on their out-of-hours books (for the want of a better name). The ‘salesmen’ then get to work contacting institutional players, or other 'brokers known to act on behalf of such players, to drum up interest in the hope of facilitating a trade, which is then executed in the after-hours market at an agreed price. On the grounds that such out-of-hours actions come under the heading of privileged information we, the private investor, only get to know about it after the event.
The event has now occurred, the sale has gone through, so expect a TR1 at some point announcing one of our institutions diminished position.
This sale, plus the shorting has driven down the price by over 50%.
PRSM is trading at 4.5 times revenues, has £126.5M in cash and a very solid trading update.
The shorts will need to buy back & with our seller out, I suggest this stock will rapidly take on a much more positive sentiment.