Big accumulators trying to buy, but they cannot buy without increasing the SP because of the shortage of shares on offer. Anecdotal information backs this up because the offering to sophisticated investors was over subscribed. So they want to buy but they have to buy on the market. And pay higher than the amount of the offer $2.40.
But it's in their interests to make it seem to less well informed shareholders to think the serious run is over and to doubt the stock and sell on impatience. So that's the motivation to hold it down on the open and on the close. To confuse and confound exactly how you're feeling. It's called FUD spreading Fear, Uncertainty and Doubt and they do it in a number of ways. One is to influence the share price.
To help themselves buy as cheaply as possible they sell stock into the price on the open and on the close to try to make it look like the SP is less for the day. Most people only look at the close TBH. This means they think ok not much happening to AZS it's not a meteoric rise....
But. If you check the Value Weight Average Price you will see the true average price for the day which is more reflective of the price they are paying during the day. They can't hold it back but they can increase the doubters and try to make it seem more risky as a buy and hold to retail investors.
There are variations of this called Short Ladder Attack, where they short the stock and then go into social media to talk the stock down and scare people into selling with their FUD. Then they cover their shorts and then they let it run. This can be part of a wider accumulation strategy because it's easy to disguise the final beneficial holder of a stock so brokers and instos are motivated to do this to buy on the cheap.
All kinds of games get played the market is very difficult to read. It took me years of observation and asking questions and reading up on it.
The main thing is to keep asking questions, like you're doing and ask yourself if someone is trying to influence you one way or the other. There are no stupid questions, the market is complex.
Shorters will get crucified a the stock is set to rise, and does so because they have to buy back the stock no matter what the price is to cover their bet. They borrowed the stock and they have to rebuy it. If they bet the wrong way then there is a sudden rise in the SP it is hell to cover their shorts. It's complicated, and well worth reading up as much as you can to get a handle on it.
Basically they don't want to short a stock that's likely to rise, it's a bet that it will fall. And that's why you look at what the shorting is like with AZS. Because if we are on the edge of a seriously good news flow, then it's likely that nobody is shorting the stock. And with AZS the shorters are few and far between. Someone posted on this a day or so ago.
All IMO not financial advice.
AZS Price at posting:
$2.83 Sentiment: Buy Disclosure: Held
