Author Topic: Price Fixing  (Read 3059 times)

JDP

  • Jr. Member
  • **
  • Posts: 88
  • Karma: +3/-0
    • View Profile
Price Fixing
« on: April 01, 2015, 02:32:07 pm »
So, it might just be the novice in me, but I have seen some small caps share price take a nose dive, and then looking at the volume of share sold, it literally is only a few hundred to a couple of thousand. This would continue day by day, some time, a upswing cause the volume would increase, might be that it reach the price point for someone else, and they do a buy. But eventually
the downward trend continues with lower prices and small volumes , and then suddenly  you see huge volumes say 600k or more. Is this legal? Or is this just a small cap thing?
 

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: Price Fixing
« Reply #1 on: April 01, 2015, 03:19:30 pm »
I still have an absolute belief that there are some people whether they be traders or fund managers who move prices on various counters. The Stock Exchange has an investigative section which should investigate all non normal price and volume movements. Whether they really fulfill this function fully is open to conjecture.
I hold 1.5 mill Nutrition shares which for months have been flipping between 1 cent and 2 cents - a 1 cent move in my case makes a substantial value change as all of my holdings were purchased at 1 cent. Last week the share continued to flip between 1 and 2 cents but the volumes went up significantly. This week the price has flipped between 2 and 3 cents pretty much everyday and volumes are significant presently almost 1.8 million shares have traded today alone, so someone/body is moving the price. There has been no sens out recently to announce some ground shaking event so I suspect insider trading or a BEE deal being put in place. the former is almost impossible to investigate as the onus is on the JSE to prove this, and not the other way around where the company has to defend the price movement or volume increases
Nutrition is pretty much a penny stock but if it gets to 5 or 6 cents I could make a substantial profit if I can unload my holdings, why do I hold them - simple - could make a lot of money if they improve markedly, but it is also a bit of a hedge against CGT for tax puposes
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

JDP

  • Jr. Member
  • **
  • Posts: 88
  • Karma: +3/-0
    • View Profile
Re: Price Fixing
« Reply #2 on: April 01, 2015, 04:08:31 pm »
Mmmm ye I have seen this in ESOR (up and down from 18c to 23c) and in ENX specifically, was at 250 then trickled down to 220, and suddenly 600k volumes, where previously it was 2k, 5k, and 10k purchases.
Just seems strange to me, and my only conclusion is that it get sold in 2k, 3k and 10k batches, forcing down the price to specific price point and then BAM in comes the volume.

I mean at 220 per share selling 315 shares = R693.00, and then the buyer has to pay all the tax etc., strange :wtf:
« Last Edit: April 01, 2015, 04:14:52 pm by JDP »