Someone is buying Network Data Holdings (Hipstar) shares
Following this mornings post, I thought I would keep an eye on the actual daily volumes and trades. For the folk less familiar with the workings of the stock market, this is not a share that trades in any great volume on any given day, there are various reasons for this, but just one of them will be that the overwhelming majority of shares (90.5%) are held by the owner and extended family. This makes it less likely that the market will view this as a share they wish to trade often, on the upside it mean good governance if the key beneficiary is the person running the business!
Owing to the lower volumes at this end of the market, there is always a big bid/ask spread when compared with the price of the actual stock itself and the 'market-maker' has to encourage trades by trying to keep the gap as small as is manageable. For example the bid/ask spread today was often 8p and 10p meaning if you bought at 10p, you could immediately sell at 8p- does explain another reason why transaction volumes are low, you can't day-trade very easily on shares like these, or even 'short' them easily.
Back to basics then, there were 6 trades today:
Time____ Price__Volume__Block_Price__Buy/Sell
09:34:11___8.3p____2,157______179______SELL
10:56:39___9.7p____9,428______915______BUY
10:59:14___9.5p___10,395______988______BUY
11:50:25___8.5p____6,458______549_____SELL
12:18:00___10.5p__40,000_____4,200_____BUY
12:56:15___10.7p___7,300______781______BUY
So clearly a buyer is in the market for these shares! If it happens to be the existing majority owners than a formal stock market announcement will be made tomorrow as always happens when larger players are involved with transactions that take shareholder above/below certain trigger levels. The property market is going to be stifled for a lot longer, are these shares priced at 'value' level or is the real level 0? This is the debate raging about some of the largest lenders in the UK and certainly there are still companies blighted by large pension fund deficits who certainly have a target price set by the analysts of zero.
Interesting times ahead, I'll keep tracking this and other publicly listed shares, whoever invented the RSS feeder certainly made my life easier, that's all I can say, no-one should have to track all this data manually!
Owing to the lower volumes at this end of the market, there is always a big bid/ask spread when compared with the price of the actual stock itself and the 'market-maker' has to encourage trades by trying to keep the gap as small as is manageable. For example the bid/ask spread today was often 8p and 10p meaning if you bought at 10p, you could immediately sell at 8p- does explain another reason why transaction volumes are low, you can't day-trade very easily on shares like these, or even 'short' them easily.
Back to basics then, there were 6 trades today:
Time____ Price__Volume__Block_Price__Buy/Sell
09:34:11___8.3p____2,157______179______SELL
10:56:39___9.7p____9,428______915______BUY
10:59:14___9.5p___10,395______988______BUY
11:50:25___8.5p____6,458______549_____SELL
12:18:00___10.5p__40,000_____4,200_____BUY
12:56:15___10.7p___7,300______781______BUY
So clearly a buyer is in the market for these shares! If it happens to be the existing majority owners than a formal stock market announcement will be made tomorrow as always happens when larger players are involved with transactions that take shareholder above/below certain trigger levels. The property market is going to be stifled for a lot longer, are these shares priced at 'value' level or is the real level 0? This is the debate raging about some of the largest lenders in the UK and certainly there are still companies blighted by large pension fund deficits who certainly have a target price set by the analysts of zero.
Interesting times ahead, I'll keep tracking this and other publicly listed shares, whoever invented the RSS feeder certainly made my life easier, that's all I can say, no-one should have to track all this data manually!
Labels: Someone-is-buying-Network-Data-Holdings-shares-Hipstar
posted by Neil Kurz at
21:52
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