We have noticed that quite often when the number of shares bought exceeds the number of shares sold the share price sometimes goes down ( and in some cases by quite an amount eg African Eagle AFE today..11/2) Yet some share prices increase when there are more sells than buys eg African Diamond AFD, African Gold AFG today etc. Can someone please explain why this is, as the number or buys and sells has in the past been key to our trading strategy. Is the information on Ample or Money AM concerning trades not accurate or are we missing something. Any answers / explanations would be really welcome.

NMS is 5000 shares

Mike

Some very strange trades on AFE today within the total trade of almost 2 million shares so far today & the mid price is down by 7%.

I cant work it out either Just look at EEN 338.581 Buy's 181.560 sell's and the price jumped 17p and i think it done the same yesterday. How do people know when to buy shares like this. No announcements nothing. Anyone sho can tell me it would be appreciated Thanks

Real roller coaster today after the early RNS

AFE Webcast on T1ps today might be revealing

Please pass on anything useful on this. cheers MP

Moneyplus,
Here are some extracts from the webcast:

At Eagle Eye .. the strike length could be significantly longer than 28km. It was suggested 40km might be possible, and an application has been made for a licence crossing the border into Mozambique.

Tanzania where a new project called Igubrubi is being drilled in the next few weeks. An analyst working for AFE's broker visited this site a few weeks ago, picked up a rock and saw gold in it.

AFE has been approached by 4 mining majors about farming in to its potentially world class Eagle Eye copper project in Zambia. Apparently all four have now been shown data under strict confidentiality agreements.

Regards

http://www.uk-wire.com/cgi-bin/articles/200411090700140016F.html

Thanks very much Saf. I hope this will start to move the SP nicely up!

Large buy this a.m at the outer limit of the spread ( see below ) could infer that news is imminent?

102K772304 14.5 08:04 151137 13.5 14.5

About time!

Moneyplus,
Extract from the Web Cast :

***Mark Parker: Well, in fact, we now believe that the goldmine is part of the whole mineralised system which includes the copper system, so copper, gold - it's all one iron oxide copper/gold type deposit type system. Through this year, the harder we've looked at this project, the bigger it's got. We now have a strike length of some 29km from the east to the west of volcanic rocks which are mineralised with copper, copper/gold, copper/gold/silver and combinations thereof right along the whole length of it. Now, obviously not all of that strike length is economic and our task now is to find those currents in the bun which are going to make the project pay.
....
Tom: The fact that it is such a large project - and you mentioned a 29km strike length but it is conceivable, of course, that it could be significantly longer than that, isn't it?
Mark: Yes. The volcanic rocks of a particular age (about 1.2 billion years old) which host the copper mineralisation in fact occur over wide areas of southeast Zambia. We have 3 licences in Zambia which include areas of these rocks and they're also found across the border in Mozambique and we've got an application pending for ground in Mozambique as well. So there is a very large area of Zambia and Mozambique with potential for this type of deposit and we're trying to put a substantial package together for the whole lot.
Tom: But in terms of the deposit which is known as Eagle Eye - I think that's perhaps incorrect. Eagle Eye is only one part of it - the current strike length is 29km but that could be 40km or it could be -
Mark: Yes, the rocks go on for 40km. We've found, so far, evidence of mineralisation along about 29-30km.***

Thanks Safiende it would be good to post this on the other AFE thread which is looked at more. All good news now I hope and also a tip today from Tom Winnifreth on tips.com.

brain2brain - 11 Feb'04 - 17:44
We have noticed that quite often when the number of shares bought exceeds the number of shares sold the share price sometimes goes down ( and in some cases by quite an amount eg African Eagle AFE today..11/2)

After the market makers have sold load of shares, eg after bumping up the price to make a nice fat profit on a company releasing good news, they will want to buy the shares back at a lower price. A large drop might catch out anybody with a stop loss and force them to sell. So it is good business sense for a market maker to drop a price after a spate of buying, particularly if there are stop-losses in place, or if people have bought on credit (T20 etc) or have other terms which might require them to sell later - spread bet?

Yet some share prices increase when there are more sells than buys eg African Diamond AFD, African Gold AFG today etc.

If the market makers have bought a large supply of shares it is in their interest to sell these at a profit. If Joe Public has for some reason been selling, it stands to reason that Joe Public becomes a net buyer when the net selling period ends. To maximize profits, the market maker ought to increase the price when selling drys up. During a selling period they should have lowered the price so that they shell out as little cash as possible for the shares. So even without inflating the price when people become buyers, the price might tend to return to 'normal'.

Can someone please explain why this is, as the number or buys and sells has in the past been key to our trading strategy. Is the information on Ample or Money AM concerning trades not accurate or are we missing something. Any answers / explanations would be really welcome.

Information on buys and sells is not provided, only time, price and quantity. The buys and sells we see are somebody's best guesses, usually the result of a computer program. When in doubt, it is better to look at the trades and decide for yourself. The information is often incorrect.

Whether a price is low or high should really depend on whether people are net buyers (charge them whatever you can get away with) or sellers (give them as little as they are prepared to take). Today's sentiment can be the same or different to yesterdays. So yesterday's sentiment can't really be a guide to today's price trend.

A final note is that market makers can own (or have access to) a huge pile of stock, maybe from a share pracing, and they can have warrants too, or an institutional buyer or seller in the background. So they might be able to sustain long periods of seemingly inbalanced trading.

Minews Story
Date: November 25, 2004

African Eagle Has An Iron Oxide Copper Gold Deposit By The Tail At Eagle Eye And A Possible Gold Mine At Miyabi.

What with an extended rainy season, lack of drills and a queue a mile long at the assay lab it is not surprising that news from AIM listed African Eagle has been a bit sparse over the last few months. The share price suffered as impatient investors tried to make a fortune elsewhere, but they will probably now be wishing that they had stayed put as the company has released very encouraging news from both its Miyabi gold project in Tanzania and the Eagle Eye copper and gold project in Zambia. In the event the company wrong footed one or two commentators as the biggest expectations had been built up for Eagle Eye, but it is Miyabi which now shows every indication of becoming a mine. As a result African Eagle has swiftly made the flight from pure explorer to developer and the share price has been trying to catch up.

3 RNS announcements and the share price up from 14p to 28.75p in 7 trading days.