Yeah, there definitely seems to be some dumping going on.
I......and i think many................don't understand it.
The announcement was very positive on the whole, but i do think that the market was expecting the signing of a binding contract.
I still think that KP2 is intentionally holding the reins on the share price (as i mentioned before), and the fact that the financial offer was presented as non-binding instead of binding could be another example of that (the offer could have been binding and subject to the same conditions, but IMO, there was an active decision to make it non-binding).
When i consider KP2's price action compared to KP2's fundamental position, its mine's asset value, and its recent achievements, i get the impression that the price does not reflect KP2's current position, its assets, and/or its achievements (recently signed a fixed price construction contract to build Kola, and has now received an offer of US$2.2 billion to finance construction which is due to start in about 6 months).
I also consider the current share ownership, and am reminded how many shares the big players, including KP2's Chairman, currently own and how much more they have been buying in recent times (as per below image).
IMO, all stock prices in all markets are manipulated to some degree by big institutions and/or by the Board of any particular company. Price manipulation is not difficult for institutions who have big accounts and hold many shares, and a very obvious example of common Board manipulation is the good-ol capraise after a couple of positive announcement (pump the price with positive news, then cap-raise).
In KP2's case, where about 70% of the company is owned by the top 9 holders (top 20 prob own 80% plus of KP2 shares), there are not many shares freely available to trade on-market (less than 20% of shares available for trade).
Of that 20% many of the retail holders see long term value in KP2 and are holding tight, so now even less than 20% is available for trade on-market.
In such a scenario, any big player in KP2 is able to move the market significantly with relatively low volumes. Our biggest day of trading recently was 25 million units traded in a day in the UK. That volume looks large relative to our daily average, but in reality, it is tiny relative to the number of shares on issue and relative to the holdings of our larger holders.
So, again, the argument here is that the KP2 share price can be easily manipulated an low volume by big players and by the Board......and the secondary argument is that the KP2 price does not match its current position and current achievements.
The questions now is: Do we have motive for that possible manipulation to occur..?
IMO, YES, we do.
For the institutions, well........yes......as stated, we don't have a great deal of shares available in market for sale, and any big buying would push the share price up significantly. So, any institution that wants to build a large position in KP2 would need to buy-up, then crash the price, then buy-up, then crash the price in order to "tree-shake" shares loose.
For the KP2 Board, well.....yes......we know that the Board and friends has been buying up shares rapidly and in big numbers in recent times. So keeping the price low, allows the Board and friends to keep doing so....all while knowing that the reins on the share price will be released as some point in the future (constructions is scheduled to start in 6 months). Also, the big holders are not Traders...they cant sell their big holdings until production starts because of the size of their holdings...so the big holders don't care about the share price today, or tomorrow, because they can not sell anyway...they only care about the share price in the longer term.
So in short, IMO, the KP2 share price does not reflect its current position and/or achievements, and IMO, the KP2 share price can be easily manipulated by big player and by the Board....and IMO, the big players and the Board have motive to actively manipulate the price....hence this is a possible explanation as to why the price seems to be significantly undervalued.
**footnote: the mid-east war is heating up and genuine selling is also playing an additional role in price pressure.
Just a thought...i could be wrong....but IMO...it is a plausible explanation.
