Having read a lot of controversy contributions it came to my mind to find possible ways to enable to lift up the SP of Cityview in the long run and to reduce shortselling and daytrading.
One step could be for CVI management to grant for instance loyalty options for those shareholders who are holding CVI shares for a period of minimum of one year. Just recently Bauxite Resources (BAU) have issued such options for 1 cent for every two BAU shares and to be exercised at 20 cents in 2009) Unfortunately I could not get those BAU options because it is not possible for overseas shareholders.
Or perhaps CVI offers a kind of bonus or dividend for longterm holders who are not selling CVI shares for a longer time.
This would enable the company to rely on those loyal shareholders and they would grant them some kind of reward to hold long. This could contribute to a stability especially in a period, when a company is developing and "under construction" and when it needs it most.
I dont knwow if this is realistic but I could imagine that this would be of interest both for the company and all shareholders, not only the longtime holders but it would add to a more balanced and increasing share price.
Perhaps other long time holders have similar proposals or ideas about that and could make suggestions on the next CVI shareholder meeting.
So best would be to hold and be patient for the big things to happen.
I have written to Mark Smyth an email about my concern and worry about the development of share price and that the shorter community in Germany is very active. I dont knwow how and where they are trading but I think they do this organized on the ASX by a broker or some way and I dont think they are shorting CVI in Germany because there is very little trading at the moment.
This is the answer of MS on my mail from 5/2/08
Dear Jens
The CityView trading volume in Australia is so large that it would be folly for dealers to short CityView for too long . The price can change so fast and has the capability of taking off .
January has been one of the most difficult months since the 1987 crash . I do appreciate that the world is entering into a recessionary phase , but CityView should be able to withstand this as it will be a low cost producer . for example the copper projects are on the coast , near a port and infrastucture , and the mineralisation is at surface
Regards
Mark Smyth
I hope that MS and the management will be able to find some strategies to bring CVI up again after these daytrading games, which will not benefit to the SP development.
I found some explanation for price manipulation:
"The act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. It is much easier to manipulate the share price of smaller companies, such as penny stocks, because they are not as closely watched by analysts as the medium- and large-sized firms.
Also known as "price manipulation".
One way people can deflate the price of a security is by placing hundreds of small orders at a significantly lower price than the one at which it has been trading. This gives investors the impression that there is something wrong with the company, so they sell, pushing the prices even lower. Another example of manipulation would be to place simultaneous buy and sell orders through different brokers that cancel each other out but give the perception, because of the higher volume, that there is increased interest in the security.
What I have noticed of CVI share price, there was the same repeating pattern happening at the end of trading, that was about 3 or 4 days before the big jump up of 32 %. Always price kept down deliberately. I cant believe that this was just by chance.....
Here is the explanation of this methods:
Marking the close
“Marking the close” involves buying or selling a stock near the close of the day's trading, with the objective of affecting the closing price. This might be done to avoid margin calls (when the trader's position is not self-financed), to help stymie a takeover or rights issue, to support a flagging price or to affect the valuation of a fund manager’s portfolio at the end of a quarter (called "window dressing"). A common indicator is trading in small parcels of the security just before the market closes, which results in a higher closing price."
