Banter and General Comments .. BRK, page-9518

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Chillicop

5,110 Posts.

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03/07/23

09:24

Post #: 68581378
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Originally posted by jophda: ↑

Posters saying the BB is driving the share price down by the way it is being conducted are just wrong .

The Announcement of the BB jumped the share price up on anticipation of it driving the share price up .
From 1.3 cents prior to the trading halt on low volume to 1.6 cents with sales up to 1.8 cents on recommencement of trading after the BB Announcement with a volume of 76 million on the ASX.
Much of that volume was short term speculators looking for a quick turn over profit on anticipation that the BB would push the share price higher.

The purpose of the BB is to buy shares that Management think are undervalued and in so doing increasing the intrinsic value of the remaining shares .
The purpose is not to drive the share price higher by being a market leader and the BB Rules preclude too aggressive buying anyway .

The lower the price the company can buy back the shares the greater the intrinsic value that is passed to the remaining shares .
That is an accounting fact .

Once the short term speculators realized that the company was prepared to pull back and let the market come to them they began selling out and probably some even sold at a small loss .
Management have access to the share registry at all times and can see if purchases are made by long term holders or new big buyers that are possible short term speculators .
A post above about a conversation between a share holder and Management said that two recent purchasers had each sold 20 million shares .

I think that management has handled the BB very well , there is very low volume for a while as the share price has dropped down each pip but the BB is on track to buy back the shares they have indicated they will buy .
If the share price begins to float up then the BB will have to follow it up too .

Markets 101
The contest between buyers and sellers sets the price .
Supply and Demand .
It is not possible for buyers to make the price go down .
It is not possible for sellers to make the price go up .

BRK is buying shares .
A Credit raise is when they are selling shares and we all know what that does to the share price .

Given the recent softness in the oil price the share price of B\RK would possibly be a pip or so lower than it is now without the BB .
I doubt that the BB will let the price float down much further since it has now reached the pre Announcement price but that does depend on what the price of oil does .

If share holders think that the intrinsic value of BKR is less than the current share price then they should sell as the BB would be lowering the intrinsic value of their shares .
If they think that it is not then they should be happy with the fact that the BB is adding to the intrinsic value of the shares they hold.

If you think the shares are a very long way undervalued than isn't that a buying opportunity ?

Expand

contra view.
the buy side has dropped away in on screen volume.
what's there, is BRK making up numbers at an ever decreasing price / interest level.
they have become most of the buy side market, so have pricing power. (scared investors away)
the price is dropping 'cause most potential buyer are seeing the price fall and don't want a bar of it. BRK doesn't see value here, despite statements to ASX, why should they - so hands in pockets or gone elsewhere.

despite having a truckload. and rating it a buy. I won't touch it till BRK step up and create a floor

Last edited by Chillicop: 03/07/23

BRK Price at posting: 1.3¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 49.0¢		Change 0.040(8.89%)		Mkt cap ! $45.82M

Open	High	Low	Value	Volume
44.5¢	49.0¢	44.5¢	$111.9K	239.1K

Buyers (Bids)

No.	Vol.	Price($)
2	34118	49.0¢

Sellers (Offers)

Price($)	Vol.	No.
50.0¢	6054	2

View Market Depth

No.	Vol.	Price($)
2	34118	0.490
3	18733	0.485
2	52000	0.475
1	800	0.470
1	1300	0.465

Price($)	Vol.	No.
0.500	6054	2
0.505	2500	1
0.515	7000	1
0.525	214	1
0.530	1884	1

Last trade - 14.52pm 08/11/2024 (20 minute delay)

BRK (ASX) Chart

Banter and General Comments .. BRK, page-9518

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Banter and General Comments .. BRK, page-9518

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