Whales swallowing the shrimp. Institutions sold out in the mid 40’s on news of the coup. They are obligated to mitigate a risk like that. The ‘risk’ is getting smaller every day now. Ask yourself, what independent investor of sound mind, who has done their due diligence on this company, would be selling it at these laughable valuations. The market cap is certainly nowhere near where it should be. So institutions can’t sell down on that basis, buy up big at the bottom, rinse and repeat. The only people selling without motive at this stage in the game are daytraders and retailers with not enough free capital to last them more than a few weeks. They are nothing but cannon fodder for the insto’s who will throw up a wall on the sell side and wait patiently. A few hundred thousand/million is nothing to these groups. Their modus operandi is to milk the cow of everything it has then throw it to the masses. Retailers are single entities with no idea of their peers intentions. Financial Institutions feed off this predicament. They throw a few hundred thousand units onto the market, drip feed it into the buy side, hoping to force a few million units out of the nervous retailers hands, then hoover up more units than what they ‘sacrificed’ to begin with at a lower share price. Theirs a rule bandied around these places. The 90/90/90 rule. 90% of independent investors (retailers) will lose 90% of their capital in the market within 90 days. I’d say that rule is being kind. I’d put it more around 95%. Having been around these types who work for these institutions, none of this is a secret. Especially after a couple of cold ones. The market is BS. Charts are BS. It’s a pokies machine. Retailers being the pundits, instos the machines, occasionally throwing out volume for day traders to play with along the way. This is not a conspiracy. It’s market manipulation in a nutshell. Regarding trading shenanigans on FFX this week, I’ve watched the 0.36 sell offer get bought down to roughly 60000 units then loaded up to 600000 in the literal blink of an eye. Maybe one transaction in 100 that is an independent investor. What it really is, is an insto dumping $200000k on market to halt momentum. Maybe that $200000 was in the green, maybe not, but they sacrifice some of the liquidity they have in order to gain a bigger stake at lower entry in companies they like. Particularly when they had to sell a heap of that large initial stake prematurely recently in this company, on the back of the coup. Fish out of water indeed. This exact scenario has played out numerous times the last couple of days and the walls have been knocked down on each occasion. This bodes very well for the short term as well as long term future. It tells me the the instos are going to have to pay at a much higher premium than they would currently like to get away with, for a large amount of units. Buying into oversold companies with low volume can be where good returns are made for independent investors. The volume can be low sometimes because of the shares on issue, lack of interest, sure. Other times though it is because a large portion of people are holding their investments with a strong conviction because they see where the true value lay and it isn’t within the daily gyrations of an impatient casino. For what’s it’s worth my average price is now 23 cents, has been averaging up daily this week. Have a good weekend all!
FFX Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
