Off topic story/question12 Feb 2020 11:36
Apologies as this isn't related to ALGW (although ALGW does feature), but hoping I might get some insight from the folks who frequent this 'active' board, as the share this is related too has a dead BB (I've already tried engaging with people on that with no luck).
Essentially I found a company several weeks back that has had some good RNS releases recently. Thought I'd take a punt and bought small number of shares. From observation it has a low trade volume (5 a day sort of low). For the past week though the SP was slowly drifting lower as there were far more sells taking place. A lot of these sells 'mirrored' each other in that they were exactly the same volume size and rounded numbers, eg. 5x10000 in a row. So guessing these were some large sells which where broken into smaller transactions.
Since ALGW is a bargain at the moment IMO, I figured it would be a good time to snap some more up. In order do this within my maxed out Stocks and shares ISA, I had to sell something else. Since the share in question was continuing to drift down, and the next resistance point was a fair bit lower, it got the chop. This is where it gets interesting...
Literally hours after selling (my luck), the largest single buy I've seen in an AIM share happened - £302.50k. The SP obviously perked up several percent because of this.
So my question is what would typically be the explanation for such a large single buy?
- enthusiastic PI with a lot of money? Unlikely in my opinion.
- institutional investor. Seems the most likely option I can come up with.
- director buying shares in open market. RNS would confirm, but how soon after transaction would they need to post that (buy happened yesterday afternoon)?
- company SAYE scheme. Are these type of buys done on the open market?
I'm sure there are lots of other things I haven't thought of, which is where I would appreciate your input. Basically I'm thinking it's a positive sign, and that I should shuffle some of my other shares (not ALGW), in order to free up some £££ to get back in. Hence wanting the opinion about significance of such a large buy from those of you with a more in-depth market knowledge. Is something like this generally a precursor to something?
Thanks and sorry for the long off-topic story.
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