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Pannobhaso
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A researcher into gene silencing as a technology for improving the lives of those suffering from incurable diseases. Benitec Biopharma is my primary investment in this technology as ddRNAi offers one-time treatments for a broad range of these diseases.
  • Bots Rule 7 comments
    May 2, 2014 7:23 AM | about stocks: BNIKF

    In the past week or so computer bots trading with each other seem to have driven down the share price of Benitec ($BNIKF) on the ASX. Some of the non-marketable parcels of shares have been as low as a single share. These trades have frequently been made at a price lower than the genuine bid. This seems to have triggered some nervous, Aussie investors to sell, thus fuelling the descent of the share price. Stop-losses may have also been triggered.

    Someone appears to be buying these low hanging fruit that have fallen of the tree but it is unclear as to who this is .

    Today, the bots may have turned the corner. The share price on the ASX is up five cents and again there have been some single share trades. It is too early to say, but maybe whoever wanted shares at these prices is now satisfied and so we could see a share price recovery next week.

    Hopefully, the US market will follow the Aussie market and we will see a gain in the share price today.

    Stocks: BNIKF
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  • PICOLOMINI
    , contributor
    Comments (1277) | Send Message
     
    Can you tell what share volume caused 5 %?
    If one share sold alone has an impact, the 5% jump could be irrelevant.
    2 May 2014, 10:38 AM Reply Like
  • Pannobhaso
    , contributor
    Comments (242) | Send Message
     
    Author’s reply » Yesterday, on the ASX, Benitec opened at $1.01. Fifty-seven seconds before the end of the day, the share price was still $1.01. Between that time and ten minutes after the market closed, 10, 481 shares changes hands at the final price of $1.03.

     

    In the day there were at least 144 trades out of a total of 544 which were less than a marketable parcel. These trades occurred throughout the day, taking the price both up and down. The smallest trade was for one share and that trade took the share price from $1.015 down to $1.01. The bots then played around, buying and selling multiple non-marketable parcels until 20, 371 were sold at $1.01.

     

    Selling into a market like this, without any change in the fundamentals of the company, I would suggest is mostly for the benefit of the buyer. If the buyer(s) are now satisfied with their accumulation, it will be interesting to see if the bots disappear or if they start an upward movement in the share price. I guess we will have to wait until the next trading day to find out.
    2 May 2014, 09:21 PM Reply Like
  • Pannobhaso
    , contributor
    Comments (242) | Send Message
     
    Author’s reply » First 16 trades on ASX were non-marketable parcels of shares (less than $500). Later, a single $99 trade took the price from $1.015 to $0.985. Some entity is going to great lengths to get their hands on these shares.

     

    US market likely to follow Aussie lead regardless of all the shenanigans on that board.
    6 May 2014, 01:04 AM Reply Like
  • PICOLOMINI
    , contributor
    Comments (1277) | Send Message
     
    tks for comprehensive answer, never observed this before!
    I´ll stay with my long position.
    6 May 2014, 11:02 AM Reply Like
  • pga2003
    , contributor
    Comments (70) | Send Message
     
    Panno, have you considered an inquiry into BLT with the ASX? Probably pointless though. All these excuses about the share price...it is looking more and more like we are going to get a full retracement and get killed. We could probably sell today, and buy back in around .45 soon if nothing happens to change the momentum down. Absolutely abysmal. Does RA capital still have all their shares? How wrong are we about the tech? Something simply does not add up.
    6 May 2014, 12:23 PM Reply Like
  • Pannobhaso
    , contributor
    Comments (242) | Send Message
     
    Author’s reply » The trading picture is very muddy at the moment and has been for a few weeks. Substantial holders are required to notify the company and the ASX if their position changes and there have been no announcements made concerning any of the major shareholders. This should mean that RA Capital have retained their holdings.

     

    So who is selling?

     

    It would seem that the sellers are retail investors spooked by the downturn in the share price.

     

    So who is buying?

     

    This is sixty-four thousand dollar question and it is impossible to know until they accumulate sufficient shares such that a public disclosure is required. However, what we do know is their pattern of trading. Computer bots are trading small quantities of shares both up and down in price. Large sell orders are placed just higher than the current offer. As holders sell into the market based on the fear of a large exodus, the large sell order is quickly removed and the on-market shares are mopped up. In some cases a seller and the buyer could probably the same entity. Trading then continues until the next assault is launched.

     

    All this churn creates uncertainty and so the pps continues to fall.

     

    IMO it does not help that the ASX allows Cross Trades, provided they are done within the bid/offer range. So a trader with two entities can transfer shares from one entity to another, effectively loosing no shares, but still influencing the share price. There is some evidence that current trading in BLT on the ASX has been through cross trades.

     

    As I have said previously, the fundamentals have not changed so I am holding tight.
    As far as the ASX, or the Australian Securities and Investment Commisson, doing an investigation in concerned, they don't seem to regard general patterns of trading as evidence and so trying to get them to do anything is a waste of time.
    6 May 2014, 08:56 PM Reply Like
  • pga2003
    , contributor
    Comments (70) | Send Message
     
    As usual, thanks Panno...I also figured contacting the ASIC would be pointless as they are the ones who are actually facilitating this stuff. Fundamentally nothing has changed, the science is ignored and undervalued and we just have to keep waiting for the SP to rise. Looks like Lodge Partners and their ilk knew what they were doing with a year end price target of 3.20. At this rate that will look great.
    8 May 2014, 12:48 PM Reply Like
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