BBDB859 wrote: Hey Nordico.
Here are some terms of manipulation I found, by Gibbs Law.
- Wash trading – selling and re-purchasing the same security or substantially the same security to generate activity and increase the price.
- Bear raiding – attempting to push down the price of a stock by heavy selling or short selling.
Given the defenition above: This is probably more of what took place on this past Friday Jan. 10/25, in that short period from 9:30 am to 11:30 am, and then the buying started up again and the stock recovered, to close up $1.35 above the previous day close. The culprit was Vanguard and it's subsidiaries. The gap in the SP fluctuation for the day was roughly $6 dollars for the day. From say roughly $88 to $94 on closing.
Those 2 terms above is exactly
what went on Friday's manipulation.
The "Bear Raiding" was started by Vanguard, and then its Subsidiaries started gobling up the lower priced shares by
"Wash Trading". Therefore, the SP started to recover again after the covering of the shorting occured. It was done in a short period of time probably to make a quick buck from shorting, and scaring people/shareholders to sell. Then they had to cover, and gobled up the Shares.
The thing is that, by
making this maneuver, they couldn't go wrong. because most of the buyers in this short 2 hour period were all their subsidiaries working in conjuction with Vangaurd to make this quick SP drop. So they could essentially buy back their own cheap shares through the other subsidiaries orders, or partners in crime.
I hope the Bomber jumped in and started buying their cheaper offered shares, and that would have them thinking twice of doing this type of manipulation again.
I guess Nordico this is why you are always saying that the Bomber should have a
large share buyback program. To stop, or at least curb some of this trading activity and other types of manipulation which is going on. So let me ask you this then. In
your estimation would the $100M we have in place for share Buybacks this year be enough to curb some, or at least most of this manipulation. Or do they likely have to increase that amount to say $150 million going forward. Or better still, are they testing this method out to see what amount is enough going forward to stop some or all of the manipulation. I know that the first year they started the management sharbuyback program they only used $30M in 2023, and they obviously increased that to $100 in 2024, to give them the cash they need to take care of this type of manipulation, while at the same time rewarding their Managers with
Incentives annually, for their good work. I recall you saying that Textron invests heavy on their share byback program. I just checked it out and you're right. They announce that they are buying back over 25M shares to battle dilution back in 2022. That's roughly $1.3B in share buybacks since then.
Your feedback is appreciated? If you feel up to it? Either way I'm a huge fan of Buybacks. Especially if they reward both the shareholders and Management while taking shares out of the market that they are not using for the Management share buyback program. Your thoughts please. Hate to put to work on Sunday fellow. Cheers
BBDB859 wrote: Thank you Nordico. As you know me well, I'm not a trader so I appreciate the correction of the term. My whole point in the post was that, that quick drop yesterday wasn't normal. and the culprits were the same suspects from the USA doing it. I guess maybe manipulation is the right word then. What term would you use describe it?
Nordico wrote: FYI a dead cat bounce is when a rapidly declining stock's price 'bounces' off a low with some momentary buying, before continuing its decline, as the company/stock is dying. So very much not an accurate term to use with regard to Bomber's stock.
BBDB859 wrote: You are welcome Sylvia.
I learned about the dead cat bounce here, from one of the posters. There are a lot of good poster's here. They all teach us something. Especially the ones that make good contributions. I think the cat you are thinking about is the Bomber. It has nine lives. Enjoy your weekend too. Dirla