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Thanks profitissanity, this was moving so fast I didn't feel that I could be 20 mins behind anymore. Don't know if I'll make more money, but it's slightly more relaxing not having to guesstimate where the price is..
They are admitting approximately 80 million shares, prior to the admission the number of shares is approximately 4.42 Billion, or 4,420 Million. So 80 / 4420 * 100 = 1.8% ish. So its actually going to decrease the value of each share by about 1.8%. However, because people see that they only paid 0.93 per share, that can make some people sell, which makes the price drop because they think that the shares they are holding are suddenly only worth 0.93p each..
Scarface72 - Sorry I think you have misread the placing amount. 3.8 million shares are being created. Bringing the total number of shares up to 4.5 BILLION. So increased number of shares has decreased the value of all the existing shares by about 1/4 of 1 percent by my calculations.
HI HeadinTheSand. Sorry I don't know what you mean by YA. Just to clarify, when I say they, 'buy bac slowly', I mean they buy back in smaller amounts, as buying back in larger amounts would encourage smaller investors to get back in if they thought a big player was buying.
It is true. I've been watching it happen for years now. The price doesn't rise back to where it was due to the fact that the people whose stop losses got triggered don't buy back in, as I mentioned, ergo the price drops gradually over an extended period. I don't think we are far off the 'bottom' now though.
I've noticed this before as well. They are not shorting, but buying slowly, then selling a huge amount at once. This has the effect of causing a sudden loss in SP, which is then exacerbated by smaller holders stops being hit, causing a drop which is more pronounced. They then buy back in smaller amounts, and the price slowly rises back, but not quite back to where it was before due to the stop losses that were hit. The net effect is a slow decent of the SP. Then when the price has hit rock bottom, when all the small holders have given up at a big loss, they buy back and ride the pump and dump back up again. It's total market manipulation, due to the amounts bought and sold being large enough to shift the price markedly. They usually appear as a pair of identical trades, usually within 20 seconds of each other. The best you can hope for is wait and guess where the bottom might be then keep buying and waiting until the SP takes off again, but it's not for the faint hearted.