We have noticed during past few months some illiquid shares has shown remarkable price gains backed up by positive sentiment and future potentials.
To explain my assumption why big players behind illiquid shares I will take ALUF as an example as I have seen huge promotion behind ALUF….. (Please note below is only an example)
ALUF | |
Total number of Shares | 12,058,200.00 |
Company share holding | 7,534,470.00 |
Second Largest share holding | 1,000,000.00 |
Balance Shares at market | 3,523,730.00 |
Mandatory offer | 23.00 |
Stage 01 - Collection | |
Note 1: Initial collection was from 23 to 30 from the market | |
Note 2: Second collection was from 30 to 35 from the market | |
Total Share collection | 3,000,000.00 |
Average price | 30.00 |
Cost for the collection | 90,000,000.00 |
Cash payment | 50,000,000.00 |
Margin payment | 40,000,000.00 |
Stage 02 - Promotion | |
Note: Promotion was from 35 to 50 | |
Final Stage - Stabilization | |
Note: Price stabilization will be done at 50 | |
Total shares in hand | 3,000,000.00 |
Share value | 50.00 |
Portfolio Value | 150,000,000.00 |
50% Margin | 75,000,000.00 |
Cash invested | 50,000,000.00 |
Margin - Utilized | 40,000,000.00 |
Margin - Un Utilized | 35,000,000.00 |
Above un-utilized 35 million cash will be used for a collection of another illiquid share. Most important how to find out what it is. I will give a hint how to figure it out.
Hint 01 – Not a single post will be published in the forum
Hint 02 – Even if there is a post, you will get a negative reply
Hint 03 – Share price will swing between tiny band widths
Very much easy to find out if the collection is over. Lot of promotions……