Hi, Guys
I’ve been thinking over the BQT trading patterns over the past few weeks, and something keeps jangling those deep down memory bells – I think there’s something familiar going on. But I am just an ageing amateur, so what do I know? I would be interested to hear your thoughts.
First, basic market principals:
1) For every ‘sell’ there must be a matching ‘buy’- otherwise there’s no Market.
2) When there are more sellers than buyers – price goes down.
3) When there are more buyers than sellers – price goes up.
Second, BQT’s attractions to a predator:
A) At the leading edge of one of – if not THE – biggest-funded, fastest-growing businesses, worldwide.
B) Possessing intellectual property that has been proven to be equal to or better than that of their international competitors (look at alliances they have made and status of contracts they are affiliated with).
C) Possessing a presence on the ground in most major areas where growth is strongest and demand for security is highest.
D) Like all ‘acorn’ companies, BQT appears to be precariously funded because not yet profitable.
E) Because news-flow has to be ‘third hand’ and considerably delayed (affiliate company gets contract, subsequently BQT gets ‘sale’) besides probably being security sensitive and therefore ‘filtered’, BQT’s SP is more than usually vulnerable to manipulation by negative rumours.
Third, observations in recent weeks (based on end-of-day market depth position – my only way of analysing here in the UK due to time difference problems):
· The amount of interest in BQT on BBs and market has been at an all-time high.
· The Market (to me that is the total volume of shares ‘ordered’ in total, adding buy to sell) has been growing on a quite steep up trend.
· The amount of dealers/orders on the buy side has been increasing.
· Buy volume has been increasing.
· Perversely, against this background – indeed on one occasion following an excellent announcement (Adelaide Airport) – the share price has been consistently falling (I have a spreadsheet graphing this data, and to see most factors rising, and share price falling, is really weird).
Questions:
· Is it possible that someone – perhaps a market maker, or market makers - is accumulating stock to cover one large buy order?
· If this is the case, would that skew the market depth to appear that there were more sellers than buyers?
· Can the above be done within the ASX system, or is something more subtle happening?
· Are we witnessing the opening moves of a takeover?
Looking forward (as I always do) to your replies.
Regards,
Sid
BQT
bqt solutions limited
