RE: 200k volume5 Jun 2024 11:15
This impression that every fall is more often than not due to MM's playing games does not stand up to any scrutiny.
All they do is make money on the spread and to "make a market" in the stock between buyers and sellers.
Its almost always just supply and demand.
If a stock is falling on low volume then all it means is there are no buyers at the current price.
If you know about this stock, you might know there is a short in play, so maybe you would not buy due to that uncertainty. Certainly sacking the CEO is not a positive either. It suggests a Boardroom in disarray.
I have said many times, its a bigger risk to short a stock that to go long. Its not done on a whim. This therefore is a provider of caution to buyers.
Further, everyone will look at the SP and the recent trend (nothing to do with charting), to get a feel of the sense of direction.
There is nothing to suggest anyone should buy right now, other than a hope that news will break unexpectedly.
To buy on that premise is simply wishful thinking and a gamble as all the "evidence" suggests there is no imminent expected SP moving news.
This is one of the drawbacks to these BB's. They become echo chambers where "good" or "positive" ideas become the norm distorting the actual risk and blinding posters to the reality of the situation. This BB in particular does not tolerate any view other than success. The only bit for discussion seems to be when. (Either today or within a couple of months)
No conspiracy, no manipulation, no games. Just a stock that is in limbo with various question marks hanging over it with regular bond repayments which means dilution, and maybe a splitting up of the company.
Anyway, with all that out there, there is not much reason right now to purchase, so even if there are only a few sellers, then if they want to get out, the MM's keep marking the sp down until a buyer comes out of the woodwork.