I do not believe our current erosion in price is e
Post# of 154119
(Total Views: 615)
Posted On: 11/11/2020 12:00:12 PM
I do not believe our current erosion in price is entirely due to manipulation, but there could be some influence.
The long and short of manipulation is that an interested party only needs to tip the scales so to speak to move a share price. If we take BP for example, and the theory that they are trying to keep us from uplisting (I dont know if this is true or not).
When the stock price is moving sideways, as it has been for a while (its been moving down, but for the sake of argument). BP may elect to throw some money at surpressing the share price buy buying some shares, and reselling them at a loss. Lets say they bought and sold 50,000 blocks of 100 shares (5,000,000 shares). They could buy these shares at market, and then sell them for a 5 cent loss per share ($250,000).
But here is the key, they dont have to do all of the selling. When the stock is vunerable (think after vaccine announcement), they may only need to sell a fraction of that amount in rapid succession to send the stock downward. Panicked investors do the rest of the work. And, if the manipulator is smart, they pick up some cheap shares toward the bottom to recoup their loss.
This does happen. I just cant say if and to what degree it is happening here. I tend to think most of this price action is people selling and paring their losses.
The long and short of manipulation is that an interested party only needs to tip the scales so to speak to move a share price. If we take BP for example, and the theory that they are trying to keep us from uplisting (I dont know if this is true or not).
When the stock price is moving sideways, as it has been for a while (its been moving down, but for the sake of argument). BP may elect to throw some money at surpressing the share price buy buying some shares, and reselling them at a loss. Lets say they bought and sold 50,000 blocks of 100 shares (5,000,000 shares). They could buy these shares at market, and then sell them for a 5 cent loss per share ($250,000).
But here is the key, they dont have to do all of the selling. When the stock is vunerable (think after vaccine announcement), they may only need to sell a fraction of that amount in rapid succession to send the stock downward. Panicked investors do the rest of the work. And, if the manipulator is smart, they pick up some cheap shares toward the bottom to recoup their loss.
This does happen. I just cant say if and to what degree it is happening here. I tend to think most of this price action is people selling and paring their losses.
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