Interesting to look back over the two Fidelity 10m buys and the modus operandi
The first - 10,662,047 was reported by RNS on 17/12/02, but the acquisition was mis-recorded on ADVFN, I have looked back over volumes and prices and conclude that the purchase was on 11/12/02 at a price of 18.0. There were three trades reported as sells totalling 8,171,953.
Prior to that we all thought the price was being capped; look back over the posts on the other thread! It now appears we were spot on. The actual "fill" for this trade was not recorded until the following day when there were 2 sell trades totalling 9,540,000 @ 17.0.
The mis-recording certainly instigated a bit of panic selling. By 17/12/02 the price had dropped to 16.0. At this point I added at 15.99 and posted a note that Fidelity would not stop at 10m. The same day an 8m trade trade at 16.06 was mis-recorded by ADVFN as a buy. Again the price had been held down as some fund manager unloaded. Our friendly house broker already had a buyer but Fidelity were obviously playing hardball and wanted this tranche cheaper than the first. The buy was recorded by ADVFN on 19/12/02 when 18m shares were placed at 16.5. On 20/12/02 a further 4m sells were mopped up at an average of 16.15 to complete the fill. No RNS until 30/12/02.
So there we have it. Smoke and mirrors. The price has got fuck all to do with charts, fundamentals, or the wankers on SPT threads who tell us ad nauseam that the stock is worth £1; 50p; 20p or whatever. It's determined by what Fidelity and / or Ennerfelt feel like paying at any one time. The simple fact is that until we get the year end results and can put some meat on the bones of all these opimistic press releases nobody really knows if it's worth anything.
A gambler like pdyke would however reassure us that that the risk:reward ratio is pretty near optimal. At one time I had £20k tied up in SPT but now it's down to £10k, which is an amount I can afford to lose. If I lose my wedge Fidelity stand to lose a lot more, but I won't add above 16.0 until I see some numbers.
I think there are an awful lot of people who feel the same way, which is why I forecast a 16-19 trading range in the short term.
A very happy and prosperous New Year to all our readers.
ps What happened to Major Lee Hung & Arpy_Eye_Indexed?
Spirent stock quotes
Spirent stock charts
Follow this thread
