I think you’ll find the answer on my last post. From my experience, brokers are notorious for dumping shares and options ASAP especially on penny dreadfuls for doing work on marketing, CR etc. Ever heard of Patterson securities?
Take that 10 million options @0.12c with expiry on 31/12/22 for example, 3.5 million were converted in this announcement, that’s $420k someone had to fork out 18 months before expiry date! Not many people would have this kind of spare cash lying around except for brokers. These options were issued in March 2018, so these brokers have been waiting for their payday for over 2 years now and they also have many other penny dreadful companies options they hold as well. They hold definitely would consider PAA a penny dreadful in their terms and as soon as the options are in the money, they would convert it and dump it on market instantly.
That’s how they work and can probably explain the constant supply of shares in the low 20s in the last couple of days. Of course, this is not all bad news as PAA also gets rewarded with a much needed $509.5k in the kitty. Remember, as I’ve said before, hardly any shares have been converted in the last few years so this is also good news.
PAA Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
(20min delay)