Recently shorting has dominated these threads. Massive thread drift and much guessing of intent [a lot of it wrong, probably]. So be warned, Usual Suspects, this is a new place where the actual owners of STX, by definition longs unburdened by hedging, shorting, algorithms, secret agendas etc. can discuss the current health of their Company. And it most definitely legally is their Company, though it is currently in the thrall of market participants with other agendas and other motives. Take your incessant downramping elsewhere.
Firstly, some simple maths. STX has currently [about] 2.86 Billion shares on Issue. 1% of that number is 28.6 Million. The daily turnover is nearly always less than 28.6 million, usually around half that, total on both exchanges, but that might be leaving out 'dark pool' trading, which might be not fully recorded. Consider that half, maybe two thirds, of all trading these days is HFT, generally front running legitimate buy and sell orders for pips and also day and very short term trading with various motives. And there is also, by any standards, a high amount of 'cross trading' observable lately, apparently between related parties, much of it for opaque reasons. So in reality the share price on any particular day is determined by a small number of shares changing hands, relative to SOI, and the vast majority of shares are not traded. But all are affected by the changes in price.
So what I'm going to do is this. Carefully note the date. OnMonday 15th July I'm going to buy 10% more shares than I have now. I might fund this with new money, or in preparation I might quietly sell 10% of my existing holding into the market during this coming week as the opportunity arises. Or possibly I'll choose a hybrid, a bit of each. I honestly have not decided yet. But after I've bought, the most important thing is I'm holding them. For a long time. I'm an owner, not a trader.
I had in mind a more light hearted name, you know, but I've decided to call Monday 15th July SOSAM Day #1. It stands for STX Owners Send A Message Day. It has a reference number because there could be more later, depending.
What are you doing on SOSAM Day #1? I have no idea, and neither do I need to know. It's not RSVP. Treat this like a flash mob event. Just turn up if you feel like it on the day at the designated place, play that tune or do a dance. Buy some to hold, then blend back into the crowd.
Will it make a difference to the share price? The maths says it will, but it depends how committed the actual owners of this Company are. If just 10% of the owners of the shares on issue increased their holdings by 10%, there would be 28.6 Million new buy orders in the Market on SOSAM Day.
What will the shorts do? There's a high probability that the bit players, the Certificates For Difference meddlers and short term traders, the likes of Cheeky Charm but larger, might start wetting themselves as the week goes on as they read this, can't judge the effect of the coming flash mob event with any certainty, and close out their short positions. Good, that's automatic upward force on the share price.
As for the big players. Well, if they can disguise their meddling from ASIC's prying eyes, so be it. Maybe they can slap it down.
Good luck to all Owners!
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