Is a big block buyer accumulating RXMD shares?
Post# of 1525
Posted On: 01/27/2016 6:47:43 PM
Is a big block buyer accumulating RXMD shares?
Bearslayer actually posted this on the RXMD board a while back when some on the board were trying to gain a better understanding of T-trades, how they work, why and how they are used. Interestingly, at the time they were just trying to understand how MM's were using them for the Tarpon sales during the 3(a)(10) transaction execution. Now here we are on the other side, IMO witnessing how T-trades are used when big blocks of shares are being bought - at least on that one day (last week, Thursday, Jan 21 - see image below) that a T-trade was posted.
I do suspect that we'd rarely see a T-trade during this buying action, because that would just make it too very clear that we have at least one big block buyer in the mix. And that would make it so much more difficult for the MM's to fill that order. It's one thing to absolutely know that Tarpon was selling shares for the 3(a)(10) transaction all of last year. But to tip off shareholders - especially when it's clear that those holding a large percentage of the float are long holders - by displaying T-trades... that would really lock up those shares for much higher prices.
It wasn't too difficult to get some shares for the first several weeks after the December 10 "debt-free" announcement, as we hit a prior resistance level that had a number swing traders taking those earlier gains (and momo players buying/selling on Dec 10). But note that, even then - between Dec 11 through Jan 16 - the volume was very low, and declining . Now that we started breaking out for the continuation of the price correction, we're getting some to sell on the way up, but not nearly enough to fill even the average share-holding position of more than a dozen of the longs that I am aware of (myself included). Consider that we know the MM's have not been able to grab (for a big block buyer) any more than 1/3 of those shares that have been sold over the past 7 trading days since the volume picked back up just a bit (if even that many - high proportion of ask slaps - "buys," many of which have been validated by posters who made the orders)... I can see why they're really working the ASK to try to limit upward price movement.
Remember - long shareholders and low volume are the enemy of the MM's. Especially when they need to buy. Whether it's a short position that they need to cover from a recent run-up, or to fill a big block order (one or more).
(from Bearslayer previously, copied/pasted from another board/poster)
January 21 T-trades
Some board members suggested that the T-trades were just last-minute late buys, but I was watching and I was certain at the time that they were not. There was still a larger block of shares at a slightly lower price on the ASK in those final minutes and seconds. IMSFO (strongly-felt opinion), those T-trade shares were bought earlier in the day.
The next day - Jan 22 - was when BMIC (MM) came on the scene, and funny manipulation started around mid-day. Later that day, a member posted, claiming that he had "dumped" shares and seemed to want others to sell (I think that poster would be posting more - as he has in the past - but he may be limited to just one post per day at this time). Is there a relationship here? I don't know, I'll leave it for individuals to speculate. But it's very clear to me - or maybe I should just say that I am convinced - that much work is being done by MM's and possibly others in order to keep the price down to accumulate shares.
Bearslayer actually posted this on the RXMD board a while back when some on the board were trying to gain a better understanding of T-trades, how they work, why and how they are used. Interestingly, at the time they were just trying to understand how MM's were using them for the Tarpon sales during the 3(a)(10) transaction execution. Now here we are on the other side, IMO witnessing how T-trades are used when big blocks of shares are being bought - at least on that one day (last week, Thursday, Jan 21 - see image below) that a T-trade was posted.
I do suspect that we'd rarely see a T-trade during this buying action, because that would just make it too very clear that we have at least one big block buyer in the mix. And that would make it so much more difficult for the MM's to fill that order. It's one thing to absolutely know that Tarpon was selling shares for the 3(a)(10) transaction all of last year. But to tip off shareholders - especially when it's clear that those holding a large percentage of the float are long holders - by displaying T-trades... that would really lock up those shares for much higher prices.
It wasn't too difficult to get some shares for the first several weeks after the December 10 "debt-free" announcement, as we hit a prior resistance level that had a number swing traders taking those earlier gains (and momo players buying/selling on Dec 10). But note that, even then - between Dec 11 through Jan 16 - the volume was very low, and declining . Now that we started breaking out for the continuation of the price correction, we're getting some to sell on the way up, but not nearly enough to fill even the average share-holding position of more than a dozen of the longs that I am aware of (myself included). Consider that we know the MM's have not been able to grab (for a big block buyer) any more than 1/3 of those shares that have been sold over the past 7 trading days since the volume picked back up just a bit (if even that many - high proportion of ask slaps - "buys," many of which have been validated by posters who made the orders)... I can see why they're really working the ASK to try to limit upward price movement.
Remember - long shareholders and low volume are the enemy of the MM's. Especially when they need to buy. Whether it's a short position that they need to cover from a recent run-up, or to fill a big block order (one or more).
(from Bearslayer previously, copied/pasted from another board/poster)
Quote:Now imagine if someone came a bit late to the party and noticed how greatly under-valued this stock is, with very solid fundamentals - you know it's going up substantially - very low to no risk. If I didn't already have the substantial position that I have, and I became aware of RXMD at the current price, you can bet I'd be doing everything I could to buy as much stock as possible before the price corrects to a fair/true market value. And I'm just a guy. What about individuals or companies that do this as a matter of their core job/living or business? Too good to pass up, right? So what if just one of these types decides they need to get their arms wrapped around 10MM or 50MM or more shares? IMO, they'd do exactly what is says above. That's without getting ideas of some possible acquisition or control play.
T TRADES
One more time on this. If any of you want to learn what the after hours Form T trades are, then pay attention. I worked for many years as a broker/trader for Wall Street firms.
In the OTC, after hours Form T trades are almost without exception "late prints". They are the result of accumulated buys or sells handled on a "not held" basis through block desks. They have nothing to do with short selling in particular, but with buying and selling in general.
Let's say you are an insider, promoter, or finance guy and who has a large block of shares you want to liquidate (the most common reason for Form T trades, in my experience). You can tell your broker (who in the penny market is usually someone who specializes in this kind of work) that you want to sell "up to XXX million shares at the best price possible". He turns the order over to a market maker (it may be one from his own firm or it may be a market maker with whom his firm has an order flow agreement). In other cases, the seller may instruct his broker to "sell up to 10% of the day's volume at a positive average weighted price". The broker usually monitors the progress of the order throughout the day.
At the end of the day, the market maker handling the order will place a T-trade print on the tape for an accumulated total at the average price at which the shares were sold if there was still a balance left to sell. If the entire order had been completed during trading hours, the print will go on the tape normally.
All of this can work the same for buyers as well. If you want to take a large position of lets say, 5 million shares, you can instruct your broker to accumulate the stock "at the best price possible" on a not held basis or "under the average weighted price". At the end of the day, if the order was not competed during market hours, the final print will occur as a T trade at an average price.
Occasionally the trade may have been completed earlier in the day, but the customer was unsure if he might want to add to the order. In those cases, the book is left open until the end of the day and the trade is printed after hours.
In more rare occasions, the final print may have been forgotten to be entered and those trades are also entered as Form T trades.
You can pretty much tell whether the Form T trades are from large block buyers or sellers by looking at the price at which the trade was entered. If it is at the lower end of the day's price range, and the stock had been under pressure that day, it was probably from a seller. By the same token, if it was printed at the higher end of the range and the stock had been strong that day, it was likely to have been from a buyer. This rule is not absolute, however, this is a sharing from a poster.
January 21 T-trades
Some board members suggested that the T-trades were just last-minute late buys, but I was watching and I was certain at the time that they were not. There was still a larger block of shares at a slightly lower price on the ASK in those final minutes and seconds. IMSFO (strongly-felt opinion), those T-trade shares were bought earlier in the day.
The next day - Jan 22 - was when BMIC (MM) came on the scene, and funny manipulation started around mid-day. Later that day, a member posted, claiming that he had "dumped" shares and seemed to want others to sell (I think that poster would be posting more - as he has in the past - but he may be limited to just one post per day at this time). Is there a relationship here? I don't know, I'll leave it for individuals to speculate. But it's very clear to me - or maybe I should just say that I am convinced - that much work is being done by MM's and possibly others in order to keep the price down to accumulate shares.
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