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6.3¢ white rock minerals limited

Hey mate, I guess you have looked at the arbitrage with aul?A...

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Wack

4,224 Posts.

6374

17/03/21

10:35

Post #: 51827013
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Originally posted by CatalystDriven: ↑

I will share the broker data of WRM for the past 3 months below:

For those that know interpreting broker data, they will know this is as good as it gets.For those that dont know how to interpret broker data, allow me to break it down for you:

Your biggest net buyers are institutional funds, highlighted at the top of the sheet in order of biggest buyer to biggest seller (hedge funds who use these big banks in their insto divisions to settle hedge fund trades). Specifically Morgan Stanley, Merrill Lynch, Nomura, UBS, Citi, and then smaller Australian brokerages in there as well.
Your biggest net sellers are retail traders/"mum and dad" investors:This is seen in the green circle ofstrongnet selling by Commonwealth (commsec) and CMC markets (retail contracts for difference/broker)
What does this mean?Over the last 3 months of trade, post the newsflow and while things have been quiet for WRM, big banks have been hoovering shares. Over the last 3 months, this has been in the average of 55-57c, as seen in the columns further to the right.

This is the more recent data, NOTE this is after the merger announcement:

Interesting things to note:
These instos are accumulating:for an average price of 58-60c (now note their sells -> 60/61c) so what are they doing? They are gathering every share they can sub 60c, when it rallys above 60c they sell it down back to 55-60c and accumulate further.
Now lets pair this with a chart below so we can see what this broker data looks like when charted for the past month:

Welcome to grade A accumulation by banks:That broker data above is the rectangle box highlighted below, as it takes 3 days for data to settle, we cant extend it to current day.

The orange line is:Where banks have been selling to ensure the price drops back down to their accumulation range of 55-60c. This corresponds with arrows showing the very, very low volume it has required to push the share price down. What happens when more retail mum and dad traders start putting sell orders up to 60-63c? The green line and arrows happen:
The green line is:Where banks are buying all these mum and dad traders shares, as shown by the sheer volume it corresponds with in each day of trade as seen with the green arrows - only for them to sell it back down.
The grey line:Simply the ~average of the broker data above, where banks on average have bought their shares post merger.

Conclusion:
Banks are buying WRM like crazy, controlling the flow of shares both before acquisition and after, at an average price of ~57-60c.What happens when newsflow starts and they are done accumulating?? They usually start letting it run, remove sell side pressure, and retail attention follows (mum and dad investors pile back in).

Just a bigger picture of the below chart: With the above lines remaining, the Alaskan season newsflow box and 75c target.

Expand

Hey mate, I guess you have looked at the arbitrage with aul?
A break through that top line should put us at ~85c
85 x 0.78 = 66c/ share for aul.
Actually I am expecting higher as we move closer and into drilling season in May.
@WhackyWolly This may be in your interests also if you have not already participated.
I must be honest here and admit that it was @fbx258 that picked this up.
Kind regards, Wack
WRM Price at posting: 60.0¢ Sentiment: Buy Disclosure: Held
9 Upvote

2 Great analysis

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