driver
- 02 Mar 2006 15:23
moneyplus
- 06 Jul 2006 18:49
- 231 of 934
EPY is going up again after a pull back-half year results due end of September. It's hard to buy many online-I'm expecting good rewards from this one!!
silvermede
- 25 Jul 2006 09:37
- 233 of 934
See RIFT news today and also COH trading Update
hewittalan6
- 25 Jul 2006 09:41
- 234 of 934
Watch BRY (contracts flowing, no debt) and HYC (just keeps going up).
Alan
silvermede
- 25 Jul 2006 09:48
- 235 of 934
Alan - Noted & thanks
moneyplus
- 25 Jul 2006 13:36
- 237 of 934
EPY-half year results out on the 28th interest is definitely rising!!
hewittalan6
- 28 Jul 2006 17:02
- 238 of 934
Silvermede,
Did you notice? HYC +6.38% today as a result of the AGM.
Can't see anything specific eminating from it, but someone must have been impressed.
Alan
driver
- 31 Jul 2006 10:06
- 239 of 934
From another board interesting post.
Thought I might share my thoughts on market makers while I have a quiet moment, if anyone is interested. There's a lot of misinformation floating around on these boards, it might help people understand a bit more.
I think the key to understanding the market makers is to consider that they are only traders, just like us, buying and selling shares to make a profit. They want to buy at the bottom and sell at the top.
The difference between them and us is that they take a very short term view - they like to keep a 'flat' book overall (holding no shares) to minimise risk. They also have influence over the price movements, as they set the prices.
They have two ways of making money - the first is through the spread, the second is through price movements. They can make money from the spread even with a flat price, by moving from the bid to the offer and back, buying and selling and profiting from the difference between the two. This doesn't really affect us, unless the spread is very wide in which case it's hard to profit.
It's when they make money from the share price movements that we should be interested, because the market maker's interests are the opposite of ours. For them to profit by buying cheap and sell expensive, we have to sell at the bottom and buy at the top. This is achieved in a few ways:
- If a share has been low for a period of time, people have sold out and moved on and the MMs have a holding, they will want to get rid of it. The SP will start rising for no apparent reason, causing people to speculate and buy into the rise. The price may then stabilise when the MMs have cleared their stock, or they may continue the game by dropping the price to encourage selling, and repeat.
- The MMs may go short on the stock. To do this they may raise or lower the price to encourage buying (on some stocks, people will buy in when it looks 'cheap', on others people will see a rise as precluding 'good news and will buy). The price will then fall, leaving you with a choice of holding for an unknown length of time to get your money back, or selling at a loss.
If the SP suddenly rises on good news, with a lot of people buying in, you can assume that the MMs will have previously held a flat book and unless they had prior warning of news and accumulated a decent number of shares through a 'treeshake' (suddenly dropping the price, then raising it again to frighten investors into selling) they will have gone short on the stock. They then have a large paper loss - they have sold shares they do not have and must buy back at some point to balance their books, and have sold them at an average price lower than the current price. Many investors will try to sell at the top, helping to balance the MMs books, but leaving them with a large loss. This is the main reason that stocks 'retrace' after a rise - the MMs will drive down the price as far and for as long as possible, to sap the moral of investors, and hopefully to encourage them to sell at the bottom. It's worth noting that when they do this, sometimes the buying still outweighs the selling. I believe they allow this in the hope that given enough time, the buying will dry up and people will lose confidence and start selling.
If the share price suddenly falls on bad news, the MMs will try to limit selling as much as they can, and will drop the price as fast as they can. This is so that when they do absorb all the sells they will accumulate shares at the lowest price possible, and hopefully sell them back into the market on any bounce or future rises.
Well, I hope that helps somebody.
robertalexander
- 31 Jul 2006 10:10
- 240 of 934
what do you think of THR they are a hisk risk exploratory share. the last RNS gave disappointing figures but dont how to interpret these. do they mean that they are still a poss multi bagger but not to the same extent as previously thought or more likely dont touch me with a barge pole?
your thoughts if you get a chance please?
i only hold 100pounds worth and can afford to lose it as was a little gamble.
Alex
bosley
- 31 Jul 2006 20:55
- 241 of 934
alan, i'll stick it here.
from what i have read it's not a dead cross. even though the 50ma has crossed the 200ma, the 200ma is still moving up. for it to be a dead cross both the 50ma and 200ma need to be on the down slope. however, if things carry on like this it does look like there will be a golden cross quite soon.
hewittalan6
- 31 Jul 2006 21:53
- 242 of 934
Take your word for it, bos.
Even with 20/20 hindsight I can't see anything in the chart that would have suggested the rapid rise. help me to learn?
Alan
bosley
- 31 Jul 2006 22:52
- 243 of 934
the macd turning positive, maybe? but here is a good opportunity. let's keep an eye on it. if there is a golden cross, then it should be followed by a good bull run.
moneyplus
- 01 Aug 2006 20:53
- 244 of 934
Picked up a few Redhall group RHL today been rising strongly-so I'm late to the party! lots of nuclear work to come their way according to ADVN posters - glad of opinions on this one. cheers MP. anyone following EPY-they've put out fantastic results today.
silvermede
- 02 Aug 2006 09:20
- 245 of 934
MP, Very interested in EPY, on my watch list, they are certainly delivering.
moneyplus
- 02 Aug 2006 12:44
- 246 of 934
Disappointing there wasn't a better sp lift after the results but they are quite difficult to buy online-only small amounts better sizes through a telephone deal.
hewittalan6
- 02 Aug 2006 12:50
- 247 of 934
That HYC is up again today. Golden cross looks very likely.
Alan
hewittalan6
- 04 Aug 2006 07:33
- 248 of 934
director buying at BBC.
hewittalan6
- 04 Aug 2006 09:05
- 250 of 934
The adverts play havoc with my VCR.