1) They could simply be padding but if you wanted to pad you could put an order in for a gazillion at 1c like EKMO has.
2) They could be there to make it look stronger than it is. A prop more than padding. The idea being to force people to put their orders in at least at 25c in order to build some support.
3) Some people believe gaps fill. They do at times but seldom on changing fundamentals. But someone could have an order there on the off chance that it comes down that far. A real order but an unlikely one to fill.
4) They could have heard or may think there is a cap raising at 25c and are expecting the price to fall to the cap raising price.
Now this is actually possible. Cap raisings have to be at a discount otherwise there is no value in buying from the company - you may as well buy on market and not contribute to dilution - except the company doesn't make anything when that happens. The price was close to 30c the other day so 25c is not unreasonable.
Sometimes prices fall on a cap raising - sometimes not. If the cap raising removes risk and potentially means more profit then it can come up. If the cap raising does nothing but dilute then it comes down.
I generally follow the rule that most orders occur at market or pretty close to it. And that people don't signal large orders - they wait and pounce when there is the volume to support it or feed them in in small parcels.
Personally I don't think they have a snowflakes chance in hell of filling or I would have sold and would have my buy orders queued up with theirs.
But hey I could be wayyy off beam. Some people trade using horoscopes and lunar charts as well so guessing motives is always dangerous.
Anyway enough of my pontification.
EKM Price at posting:
38.0¢ Sentiment: Hold Disclosure: Held
