I would like to propose a possible scenario involving the share repurchase plan and get informed critiques from the distinguished members of this forum:
Lets suppose the market manipulators decide to fight the share buyback. Can you please explain how the buyback will be successful when there is currently a short attack going on at the same time involving up to 5 percent of the shares. I wonder if it is possible for the shorters to generate enough short shares to simply overwhelm the share buyback? In theory they can always just borrow as many shares out of thin air as desired to generate the fake negative liquidity and then get their bots trading amongst themselves to lower the price even further. Does the share buyback really make this any more difficult?
Suppose the share price gaps up to 15.50 immediately after the buyback. If the market makers want the share price to be in the 13.50 range they can just do what they have always been doing and essentially print more short shares and release their destructive trading bots. And since the shorters and the brokers are essentially one and the same entity, they get to set the price at which the shares are trading. So wouldn't clinuvel still just be doing the share repurchase at the lower price? (Which may still be beneficial to shareholders since it will increase the concentration of shares at a decent price).
Again, this is just a thought experiment. Your counter arguments are welcomed and encouraged. Thank you.
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Last
$14.09 |
Change
0.100(0.71%) |
Mkt cap ! $705.3M |
Open | High | Low | Value | Volume |
$14.00 | $14.30 | $13.93 | $676.4K | 47.95K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 200 | $14.04 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$14.16 | 405 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 200 | 14.040 |
1 | 150 | 13.920 |
2 | 6000 | 13.900 |
1 | 527 | 13.890 |
2 | 728 | 13.850 |
Price($) | Vol. | No. |
---|---|---|
14.290 | 709 | 1 |
14.300 | 833 | 1 |
14.430 | 668 | 1 |
14.460 | 709 | 1 |
14.490 | 180 | 1 |
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