RE: Sp16 Mar 2021 09:52
People have to get rid of this thinking that the MM's have some sort of personal vendetta and are conspiring to hold the share price down. There is no point in them doing that as they make money off trading it at whatever level and the choice each and every one of us has is to buy, sell or hold. Occasionally the MM's take advantage of pi nerves and swing the price around to try and create more of a market, a la recent events, but apart from that and a little jiggery-pokery to get a bit of action going, that's about it.
Why the position this morning? It's simple, as you can see from the published data, there have been many more sells than buys. Now as to why that is, well there are a few categories;
1. The weak willed, who have no conviction and are easily influenced. Jelly legged spooked sheep.
2. The woolly minded, no understanding about what they have bought into and therefore no understanding of whether they should buy more, sell or hold and eventually just drift away due to lack of interest.
3. Traders, trying to make 10% on a flip.
4. Those caught in a cash call of some kind. Overcommitted or caught by the extended timescale. The latter I have a lot of sympathy for.
5. Shorters. We all agree they are scum, but if you are one of these, I think there are many more sensible stocks to short than one in the middle of an FSP which could rocket and Jub you completely.
Then there are those who are fully loaded and have made the decision to hold and stick it out to the end. This combined with the ii's who are less easily influenced which leaves a free float for which there is apparently not much appetite at the moment. So, until there is sufficient motivation for the market to take a bigger position, things will continue to stagnate. Sometimes the market doesn't correspond with our own beliefs, but it's not a conspiracy.
This is the frustration but also the beauty of AIM. There are many companies undervalued and many others massively overvalued. You do your research, take your position and wait.