RE: RRR: 2 Buys of 5m each at 14:46 & 14:47. Who? TR1 Holder?4 Jun 2024 18:49
If Mr Black is a trader in this instance, he would NOT have taken his RRR stake to 10.9%:
[1] A/c to Noirua on the other RRR forum, the average price for Mr Black's total 10.9% is DOUBLE the current share price.
[2] If X & Y, on this forum says it is X days to the next funding or so they wish to postulate or speculate without any foundation yet ie RRR RNS etc to indicate so, then would it NOT be SENISBLE for a merchant banker like Mr Black to take advice from this forum's "experts"? Why buy on Thur, Fri last week in such a hurry ie why not wait?
[3] Mr Black as far as theory goes, should NOT INCREASE THE RRR STAKE if the experts on this forum say it is X or Y about RRR. Why? IT WILL BE COMPOUNDING THE LOSS @av double the sp currently.
[4] It will tantamount to AVERAGING DOWN against the basic principle I outlined to Talk Info who asked me about averaging down. I said I would NEVER average down as it is called catching a falling knife.
[5] Mr Black would be playing with his STAKE ONLY IF HE MAKES FROM IT and he can AVERAGE DOWN HIS SHARE PURCHASE PRICE but NOT INCREASE FURTHER BY ALMOST DOUBLING to av DOUBT THE SP CURRENTLY.
No logic to the theory of Mr Black buying at DOUBLE THE SP price to SELL? AT A LOSS ISNT IT UNLESS THE RRR SP RISES MORE THAN DOUBLE. If Mr Black sells, he would NOT WANT SUCH A LARGE STAKE as 10.9%. To test this, if correct, he will BE BUYING NO MORE THAN 10.9%. Folks buying are spending £80 and that kind of figure and there are NO mega BUYERS. So, Mr Black MAY BE INCREASING HIS STAKE FURTHER FROM 10.9%/. ALREADY , THAT IS AROUND £473,000 if it is as Noirua said his av is double the current sp.
[6] So, Mr Black would need a SP MORE THAN DOUBLE THE CURRENT PRICE which means that the RRR-POW DEAL AT 0.15P IE 3 X CURRENT PRICE would just provide a 30% profit but less after costs and spread. Why? Mr Black 's profession is a investment manager and merchant banker. ALL IN THE PROFESSION KNOW THE BASIC RULES. So, let's wait and see if Mr Black wants a seat on the board otherwise there is ABSOLUTELY NO POINT BUYING NOW just to TRADE as one postulates. THE RULE, NEVER BUY HIGH, SELL LOW AND LOSE. IT IS BUY LOW AND SELL HIGH OR TRIM PROFIT SO TO RUN ON LOWER SP SHARES OR SOME FREE SHARES. Look at Paul - he only has 3.78% POW stock. That is not the ideal as the ideal is some 6% of which Mr Black had prior to the RRR TR1 RNS, Fri, 31 May 2024. DYOR, NIA.
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