RE:Pumping GLH the mythVery clear as always. thanks Dave. But I disagree about dump and pump.
This is how I understand it:
a) If Creditors want to dump this stock to acquire it cheap they have to sell continously (This is my studied assumption but you may disagree).
b) However there are 2 problems with this approach: 1. they have limited number of shares so not sustainable 2. eventhough they gain by cheap acqisition but they also loose by selling in a downward trend. For example the "anonymous" seller has a net 50 Million sale of its own shares and lost about $3 million in the last 6 months because at some point he had paid more for those shares. $3 M is little compared to the acquisition gain (almost x10 more) but still not negligible for their greed.
c) Effectively they are in a better position to patiently push the market down only marginally. Sell today and buy back a fraction of it later when the buy volume reduces.
I did not want to elaborate it earlier but let show you a simple correlation map between 7 big banks and the Anonymous trades over a period of 4 months. In the map I showed 3 boxs that represent 3 models for manipulation. I assume the general public is effectively in the buyer side (I have data to show it is the case in general and not just for GLH but will skip it)
Box 1: is when you counter the bid with ask orders to cancel the pressure on the price from from public. It is how probabely everybody in this forum is thinking about manipulation. It is the simple two player model. A buyer public and a seller.
Box 3: is basically a hoarding mechanism. It can be started by a roamer followed by a public momentum. This result in sharp up or down peaks but short lasting.
Box 2: is what is happening here.Manipulators are active in both bid and ask side. like Box 1 the sentiment of the public is counter balanced to make the price flat or induce a continous slow trend. Just notice how TD and then RBC fall in this box. I also showed their combination. Such a tight localization of correlations over 4 months in a quarter that general public do not expect is very explaining.
There are much more to discuss such as how Canaccord and Jitney ares involved but good enough for this forum.
