No conspiracy - just typical 'bot' trading. Algorithmic trading to give it its formal name.
It IS a type of manipulation, but it's not done by directors etc - it's done by large broking firms, in order to walk the price down notch by notch until they trigger a cascade of stoplosses and then can buy up much bigger parcels all the way back up to where the price was initially. It's a sign that large brokers are interested in the stock - a GOOD sign.
The small parcels are usually two computers buying and selling to each other with no net gain or loss - just the price change. Large broking houses are the main ones who can do this, as they pay no brokerage to themselves, or else the brokerage on all the tiny trades would be uneconomic.
Goes on all the time, with many stocks. When you see it happening, take it as a good sign and use it as a flag that the stock is being accumulated. Hop on and piggyback the bot trading and buy some more while the price is lower, knowing that it is highly likely that the price will bounce back up once 'they' have accumulated enough shares.
I hold, large parcel, bought at or below 20 cents. No way I'm selling mine - just topping up ;)
WMT
western metals limited
