Running discussion on SP, page-54591

capping or sp control is often achieved with sophisticated algorithms marking every trade and level 2 order. It’s always accompanied with shareholder frustration , fear , manipulation of the board (who are effectively puppets in a start up unless they have 100s of millions which they rarely have ). So how does it work ? The key objective is to either stifle the sp , drop the sp , hold the sp and develop a distinct Vwap for the sp. retail support the company in early or dark times and heavily court the shareholders . The dark times are often used by the capper to heavily dilute and acquire share banks thru various entities ( which they control ). Usually some offshoot startup or venture finder .

then when you get to the pointy end it’s been years . The share s are diluted to hell , the management start realising that they have to drop the retail and do whatever is necessary to get the big boys on board . When they see that the caper effectively controls the sp , company direction , timetable , market etc they start to just fill their boots with shares which by this stage are just counters to be massed at a low sp rather than controlled in lesser quantities for big sp uplifts (as the retail and the rah rah squads hope for ).
With control of the critical big money cones control of the company - that’s it. The company will only be given money when it’s known and agreed on how it’s spent - the board becomes a figure head puppet and inevitably want out with as any shares as they can get. The capper meantime holds all the cards and can sell millions into any company released positive news . They may be 100s of millions shares down in a week as they do this - keep loading the sells . Bounce down the uptick quickly by two pips if the buying quitens etc . As you say , not mathematically sustainable but the capper knows that the retailers get wary of this and sell up . No news cones for a while and frustration and fear see the sp drift and this is where the capper rebuilds their share stock ready to stifle next attempted surge and so on . Lots of supporting techniques are used eg down pipping auction, false trades pulled etc spread fear , frustration etc sometimes the sp can be manipulated ever downwards but if the asset has massive true value (and hence other buyers ) and the board must not be peeved if they are soon to asked to agree to CR at set sp or even TO , the sp had to be maintained at a range that doesn’t piss the board off. If the board knows / guesses this is going to happen then they will no doubt load upon shares knowing that they likely will only appreciate to that allowed - 170% of vwap for example .

many , many retailers and prominent ones don’t believe this is happening or will happen at Avz. I hope not too . But in my experience the money does the talking not the shareholders or board so keep a close eye of t120 and trading patterns vs news and market comparators …

Eric

AIMHO