15th-19th Jan 2018

Alfacomp

28 January 2018

On Thursday the 18th an RNS was received describing the conversion of 250K of Convertible Bonds by Atlas into c. 3.1M shares at 8.12p. Not altogether earth shattering news, though some did speculate on how Atlas were able to judge the conversion point quite so effectively. I see no reason for conspiracy theories just yet.

Strong buying throughout the day. A 500K sell at 9:12 caused the Bid to pull back a notch but the subsequent buying forced it back up to 8.50p.

Volume 3.3M with 1.4M more Buys than Sells.

SP up more than 6% on the day to 8.75p from 8.24p. 

Strong buying throughout the day. Very tight spreads initially made analysis difficult but PI disclosures revealed that after 1PM it was actually possible to buy at the Bid price for a short period before it subsequently dropped.

Volume 2.6M with 1.4M more Buys than Sells.

SP up on the day to 8.76p.

 A slower start to the day with the Ask progressively falling. The Buy at 9:00 was not of a significant size but the excess of Buys grew steadily until just before 2pm when a 200K sell followed by a few more largish sells briefly knocked the balance of trades back. The End of day trading position reached about +450K before a 2x 250K pair of End of Day Trades (1 classed as a Sell, 1 as an inter-MM transfer) arrived.

Volume 2.4M with 188K more Buys than Sells.

SP down to 8.68p.

A slower day still - very little to comment on, the spread has widened again and analysis is very simple.

Volume 0.57M with 118K more Buys than Sells.

SP down to 8.6p.

A Bed-ISA pair at 9:39 briefly enlivened a very quiet morning. Buying continued at close to the Ask, with two Buys of 200K around 1:40pm pushing the balance of trades strongly positive. This was followed by another buy of 113,805 at 3:44pm, followed by the first of 2x1M End of Day Trade pair. This is interpreted as 1 Sell and and 1 Transfer as is recent custom.

Volume 2.65M with 531K fewer Buys than Sells.

SP down to 8.62p.

Conclusion

On Monday and Tuesday the Market Makers continued to sell more shares than they took in. These did not coincide with End Day trade pairs as we have been receiving recently so the Market Maker nett trade position increased once more after its apparent elimination the previous Friday.

The strong buying on Monday resulted in the Share price rising to the top of the recent band 8.0-8.75p. Similar buying volumes on Tuesday kept it there.

On Wednesday the volume was slightly lower and the Market Makers were able to walk the price back down by 1%. Our old friend, 2x 250K End Day Trade pair re-appeared.

Thursday was very quiet and the SP was again walked down, and with such low volume nobody was troubled by an End Day trade pair.

Friday and buying volume returned again and this time we received 2x1M End Day Trades as a clear pair. In line with recent analysis we have ascribed one of these as a sell from PIs (presumably Erongo) and one as an inter-Market Maker transfer.

With this interpretation this weeks trading leaves the Market Makers short of c. 2.6M shares.

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