Back in the downward trend....again
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Back in the downward trend....again
How do you manipulate the market and get discounted shares you want to own if you are a big institution like acc or NZ gov't superfund.
Here is a theory. Appoint a manager like AMP capital, provide them with large amounts of funds to go on a merry share buying spree including "growth" stocks, which are relatively less liquid, fire them as a manager and ask for your cash back. The manager is then forced into selling, depressing the price.
The institution then picks up the same shares up at heavily discounted prices c/f to what they were purchased for by the manager, as the cash starts rolling in from the selldown. Possible?
but thanks anyway Mac it was a good read....lucky it was a quiet day at work
One bit of your theory is inconsistant. If one big seller can artificially push down a share price of an illiquid share (a seller such as AMP), why wouldn't this same effect manifest itself in reverse? Surely AMP would have artificially pushed up ATM the share price originally when they bought their large holding? How can one shareholder artificially push down a share price without artificially pushing it up going the other way? I am suggesting here that ATM at 90c was always an artificial price.
SNOOPY
I don’t bother to comment on short term matters much, but it would seem most probable Ziggy don't you think that around 15M to 20M shares will come from AMP and go to Australian investors, funds and/or brokers on or shortly after listing day.
AMP will undoubtedly be working behind the scenes right now with whatever Australian broker they have to solicit the best possible off market (ASX) deals they can.
It will be interesting so see what price premium that competing Australian interests will be prepared to pay for a block of shares like that in taking up an initial position.
It will be a pleasure for shareholders to have the overhang lifted, and a drift back to valuation also.
Boom, regular as clockwork, take out orders to 1c below todays starting price. So predictable, the same pattern played out over the past few weeks/months.
As a tip to people looking to invest in ATM ATM (???? ATM At The Moment!): Wait until the current seller runs out. Will be good buying and will occur probably not long after the ASX listing. Keep an eye out for an SSH notice and your finger on the button when it happens!
Errr, so frustrated