q/report - galoc field, page-4

re: q/report - galoc field (fixer) Fixer...

Interesting post...almost as if they were my own words.

I totally agree!

As for your question the other day regarding directors "maniplulating" their shareprices...

As I see it, "managing" one's share price has absolutely nothing to do with "manipulation", although I accept at times, there may appear to be a fine line between the two...and you are right, I doubt they would know exactly how best to do so anyway.

By managing ones share price, I am referring to a whole suite of tools, all completely legal and ethical, which if used effectively, can help keep the company's shares trading on the high side of fair value.

In short, they are aimed at taking advantage of...or perhaps I should say, simply appreciating the dynamics of...the different types of buyers in the market.

Many directors like to blame the market if their shares are trading "below fair value", but in reality, it is more often the result of ineffective communication, resulting in little or no interest from the market...or at worst, the wrong kind of interest!

I guess communicating a company's position and the way ones does so, can be all important.

On another issue, I have often wondered about...and even considered looking into...the legalities of NDO (and any other small cap for that matter), implementing some kind of "market maker", perhaps governed by the same trading rules as company "buy-backs"...only difference of course, being they would be buying and selling at any given time.

Such a scenario, official or otherwise...preferably official...would be designed to smooth out any abnormal trading activity as much as possible, thereby avoiding a "stop-loss" sell-off scenario. In effect, this would counter-balance those in the market who might attempt to "manipulate" the shareprice for their own gains.

Obviously, it would have it's limits, but other than on the most exteme of trading days, it should be able to help keep things withing a reasonable trading range

In the end, a more stable shareprice would attract more long-term shareholders.

Cheers!