brokers purchase shares in order to offer them to retail clients or institutions to short the stock. i.e downward pressure on SP. it effectively allows you to borrow the stock on the sell position its earning money when the SP falls. my guess is that the buying volume is from brokers anticipating a bad result from the trial. where a verdict is scheduled on december 16.
it would be one idea on why the sp has rallied from 150 to 180.
the innitial push occured on thursday last week. to confirm this a good indication would be to check the active stocks on borrow these figures are t4 .. 4 trading days delayed. if its spikes tomorrow i.e the number of stock on borrow increase then this would somewhat support this thesis that its brokers buying in anticipation of an unfavourable verdict. if the stocks available to short doesnt change much then its just a market correction. where buyers are starting to see value in the company.
NXL Price at posting:
$1.82 Sentiment: Hold Disclosure: Held
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