TG21 Plc - a new name to go with the new beginning

JAF1948, now for a sensible response to your question.

I do like Fusebox's insight "As soon as the sellers come out the mms mark down. As soon as the buyers come out they mark up." Goodness me ... the man's a genius!

Firstly you have to realise that when you buy or sell shares (apart from a primary issue eg a placing or a right issue), then the money does not go to the company - it goes to the seller/buyer, via the MM's who retain a cut. The spread between bid and offer is an indication of that cut, although you can deal inside the spread. For part of the day, with TGP on 10-11, you could actually sell at 10.3 and buy at 10.6.
With this in mind, the actual share price of TGP is not of direct importance to the company, unless they are planning an acquistion via shares, or the directors are about to give themselves some options. Of course, a strong share price is better than a weak one ... for a bit of machismo.

Anyway on to price movements. Most companies on the LSE have a price / market cap elasticity which lies between 5 and 20 - i.e. is someone comes along and buys £1 million, the market cap will go up by £5 million to £20 million. With small caps, this elasticity number can go upto 50 or 100.

This elasticity number also moves around depending on supply and demand, so if large parcels of shares come to the market, the MM's may not be willing top hold such large positions and they will mark the price up/down more rapidly. A peak in the elasticity can often point to a turning point. It is certainly worth finding out about the range of elasticity for any companies you hold, since it could provide extra info on when to buy or sell.

Finally, not all share trades are published and some large trades can be delayed by upto 3 days. So today's TGP movement could have been due to a larger sale of shares, which will only become apparent later in the week.