FMG 0.45% $22.10 fortescue ltd

Bots can exaggerate share price movements in small low volume...

  1. 12,055 Posts.
    lightbulb Created with Sketch. 3146
    Bots can exaggerate share price movements in small low volume companies. It does not matter if the price rises or falls. The ASX wants an 'orderly' market. That's like the govt saying they want a surplus to some extent.
    If i try and send a stock up or down on 1 share, the brokers compliance desk will stop you, but bots do it in the match and during trading all the time. They allow this because its a bot and not some guy playing games. The problem is that the bots are the game in many circumstances because humans write the programs. For example, the ASX has banned many bots because they had real issues and were designed to be outside the norm. Companies as large as FMG are can cope with the issue far better than a penny stock. The ASX believes that all volume is good volume,(because they get a clip) but that is also questionable. It works for them.
    I understand that bots are here to stay. The ASX will one day gets its flash crash and its only then we will see the regulators wake up. The last flash crash in the US was woefully unexplained. They were forced to take action during the GFC because naked shorting and dodgy trading was taking place.
    Lets face it, the money boys are ahead of the regulators.

    Back to the stock...
    I think FMG will crush its debt next year and do three things.
    1- Raise the divi assuming iron ore price remains relatively healthy (over $50)
    2-Start doing buy backs. (twiggy will simply get to own more of the same pie) Stock is cheap, makes it even better for the buy back.
    3-Enter large long term JV's on new projects outside iron (FMG have started the process)

    time will tell of course.
 
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Last
$22.10
Change
0.100(0.45%)
Mkt cap ! $68.02B
Open High Low Value Volume
$21.99 $22.22 $21.87 $50.13M 2.266M

Buyers (Bids)

No. Vol. Price($)
30 7782 $22.09
 

Sellers (Offers)

Price($) Vol. No.
$22.10 4253 21
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Last trade - 14.14pm 12/07/2024 (20 minute delay) ?
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