If they are betting on a delay and subsequent fall in share price then they are playing a dangerous game. It is possible of course that the margin of difference on their short position is seen as inconsequential against the probable opportunities on the spread if there is a significant rise that they just aren't bothered and know they will make it back in spades later.
unless I am interpreting the buys and sells wrongly (and given the disparity I don't believe I am), then this flurry isn't helping the MMs short position - they are just selling more they don't have (which they will need to get back later).
Thus far we have absolutely no information to suggest that either our production or sales are impacted. Indeed - our on the ground intelligence suggests that product is leaving the facility as it has for the last 3 months and that production is beating monthly records.
This is one of the safest and best shares to be in. Governments always build their way out of recessions
@giles - I'm no expert but that is an interesting statement. Since Jan21st the MMs have churned more than the entire issued shares in the company. So given that a fairly high proportion will be tightly held - that implies that some shares have been churned round and around and around. My own (albeit not guaranteed accurate) assessment of the position see the MMs have sold 3,758,248 more shares than they have (i.e they are short) Now I know that MMs are specifically exempt from naked shorting rules etc but logic dictates that at some point they have to try and regain balance in order to be able to continue to make a market. They have tried their usual ploy of dropping the price - but as I reported the other day, all that has done is invite buyers into the market as well as the sellers they seek. Even the ridiculously wide spread wasn't helping them. It's also worth pointing out that for the last week to 10 days, they have all been acting in concert also moving the Bid and Ask as one pretty much all the time.
What happens next ? I wouldn't presume to say but my guess would be they need to try moving it in the opposite direction. With the promised ********** podcast before the month is out that may be a stimulus for change. My own suspiscion is that they expected news by now and have been a bit caught out in their tactics.
This is not a COVID-19 vaccination which would require significant and standard human trials which take time. This is the re-purposing of an existing registered medicine. Whilst it will not currently be registered for COVID-19 use. Getting to a point where it can be used is fast and simple. Basically I think it is a drug called Lamivudine which is a reverse transcriptase inhibitor. Basically as the COVID-19 unzips inside the cell to replicate, the drug grabs the termination points needed to build on and so the replication fails. Thereby curing the patient as the virus can't replicate efficiently enough to overwhelm the immune system and giving time for the body to create an immune response.
RE: So mm's playing with the spread....16 Mar 2020 09:34
@giles - yes they have reduced their short position from a peak of just under 6 million down to just under 3 million now. Their problem is that even when they crash the price down to pick up panic sells and stop losses or Spreadbet closures..... they get buyers too even with those ridiculously wide spreads we have been seeing.
RE: So mm's playing with the spread....16 Mar 2020 09:04
so far on minimal volume buys pretty much equals sells and yet we ae marked down. Less than 15 trades and about 2 million volume ago we were at 1.4p. This is not real trading pressure either on the buy or sell side. This is MMs trying to find a reason to sucker action in a dead market. Sit tight and don't panic would be my suggestion
Very thin day today with less than 2 million traded. More buys than sells but nothing pointing a direction. A completely different day to yesterday MMs look like they have closed up again - we had this once before recently is you recall.
Bushwackers - you need to clearly separate and differentiate in your minds the effect of the Worldwide situation as distinct from the basic economics of Bushveld Minerals. No one looks two weeks into the future and see's Armageddon happening !
BMN isn't down because there is anything wrong with the company and when this panic subsides and clearer heads start to think where is the value to be had..... guess where they will be looking. The climate crisis didn't go away because of the Pandemic, the need for additional clean energy is with us and will be with us into the future. Please give up the scaremongery and hand wringing. This is why there is no loo roll in Tesco.