rdf---bunny raid?, page-6

Rod - I'm not quite clear how putting dummy sell offers in achieves anything, especially when they are away from the current sell price, and also a big number of shares?

I know about walking the price down and triggering a stoploss cascade, but that's usually done with small numbers of shares, and just BELOW the current sell price, then when the stoplosses kick in, you sit back and wait until it bottoms out and all the poor folks with auto-stops have their shares sold from under them. Then when it bottoms, you start buying back in with larger parcels and walk the price back up to almost where it started, with your average buy price being well below the ending price.

This is now all done by computer, including the automatic buying back in, and happened to several stocks a few weeks ago, with one (can't remember which - perhaps MAP or CPU??) all happening in 1/12 second as shown by the trade timestamps. Price went down in a big spike then back up again in 1/12 second!! Can't defend against something like that except by not using auto-stops.

But how does putting 40k shares on for sale then pulling the order actually achieve anything? Is the idea to scare the small holders into thinking that the big boys are getting out of the stock?

Maybe it is actually somebody trying to get out with some profits while the price is falling - perhaps they bought in (as I did) when the price was $1.04 and the current price still shows them a nice fat profit?

As for me - I'm keeping my RDFs, and look forward to the next price bounce, whether it's this year or next.