RE: Daily mail .July -Aug17 Feb 2021 22:40
Just to clarify why we might just touch 79p briefly tomorrow. My opinion and what I learnt 10 years ago.
A unit trust manager has say £200 million to play with. He or she decides that 20 mill goes onto leisure stocks. So Cine may get say 500k. The guys that deal are told 500k shares as cheap as possible. They will put in a buy order at 80p. In order to fill this, MM will need to drop SP to trigger stop losses. Hence we may go into 79p.
Difference between a big firm and us? We put in a buy order and panic when it's not filled, as we watch SP rise. We'll, that's me maybe. Big buyers relax and are confident. Why? They are talking to MM's direct. They have the power.
I got this info from a big investor. I defended him on the board against ****** comments and we became friends. His son was a big unit trust mngr. So that's the info as I understand it. And, the answer is Yes. Certain investors do know what the major purchases are pre buy in. Obvious really.