Hi Mr_Delta I really don`t know what this strategy is called in...

  1. 336 Posts.
    Hi Mr_Delta
    I really don`t know what this strategy is called in Trading terms and in my opinion it is not what I understand to be short selling.If you have a look at the course of sales for the week you will note an enormous amount of transactions going through in lots from anywhere between from 1 up to say 200 shares in individual trades.I contend it is prearranged through either inter or intrahouse trading and is designed to achieve one thing and that is to "con" the selling price down to what is considered a desirable level.I further contend that the perpertrators of this scheme while probably long term investors in this particular stock they are prepared to enhance their return using vey little of their total hold I.E.Very low risk.Once the seller judges they have reached a satisfactory re-entry levels a buy is made,this activity then almost completely disappears and the S/price of the stock will begin to rise again to a predetermined level when the downward push starts all over again.
    This appears to be a regular practice with small cap well managed Companies, with very sound prospects.It is not peculiar to AWE, I can assure you.This blatant manipulation is occuring everyday across those class of Companies I have already mentioned.The price of the stock only has to rise say 2%-3% before the manouvre commences all over again thus providing a handsome additional return when one considers that this is happening over and over again every day with very small stock outlay and so minimal risk for it to be an attractive proposition for the Institutions while driving the little bloke like you and me bonkers.
 
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