rationale for someone to place consecutive bid but no trade ?

[fishfillet]

Hi all here is a rather puzzling scenario:

We have a preferred stock that's very thinly traded - almost no turnover in the past 2 years. There is this person who has been placing bid orders on this stock knowning (or unknowing) there is no sellers out there. Eventually the closing price has been pushed up higher and higher but no one seems to benefit from this act since no trading occurred.

Anyone can shed some light on why is this happening?

Thank you!

 

[north5]

Someone inside the company increasing it's paper value for accounting purposes?

 

[fishfillet]

this is one possible explanation, but relationship between this person and the company couldnt be established...this person seems to be an unemployed dude doing nothing all day but trading in and out of small stocks

 

[catracho]

Hi all here is a rather puzzling scenario:

We have a preferred stock that's very thinly traded - almost no turnover in the past 2 years. There is this person who has been placing bid orders on this stock knowning (or unknowing) there is no sellers out there. Eventually the closing price has been pushed up higher and higher but no one seems to benefit from this act since no trading occurred.

Anyone can shed some light on why is this happening?

Thank you!

surely the closing price only changes if there is a trade? Ie until the bid is hit, no trade/ maybe they are just trying to find a level where the sellers are

 

[Lee Shepherd]

Try explaning what company it is, this of course obligates no one but helps us understand what it is you're getting at.

 

[fishfillet]

it's a natural resources / mining company.
In this specific jurisdiction, the continuing bid being the one and only one order placing in the market, becomes the closing price. Therefore we have the preferred stock price doubled in a year with no turnover at all!!

Of course the most obvious explanation would be that this person is placing the order on behalf of someone connected with the company. However without any substantial evidence pointing to that fact, is there anything else we can use to explain the behaviour ?

Thanks!

 

[Lee Shepherd]

it's a natural resources / mining company.
In this specific jurisdiction, the continuing bid being the one and only one order placing in the market, becomes the closing price. Therefore we have the preferred stock price doubled in a year with no turnover at all!!

Of course the most obvious explanation would be that this person is placing the order on behalf of someone connected with the company. However without any substantial evidence pointing to that fact, is there anything else we can use to explain the behaviour ?

Thanks!

I cant help explain when I have no idea what company it is your talking about.

NAME THE COMPANY.

At the moment it is sounding just like a shell company, (i dont mean shell oil) where it has no turnover but yet the stock rises through a guy who heads a boiler room operation only then to offload the sh1t stock to people in other countries that fail to do there own research.

 

[Lord Lucan]

Hit him! If he's bidding so artifiacialy high then sell them to him and buy them back at a fairer value. It may even be him who sells them back to you when he realises he is in the poo!