100 shares at a time, page-6

from herdontheterrace.com

Wednesday 25th March 2009

Accessing the publicly available course of trades that reveal which broker is executing these 100 parcel trades it can be seen that Morgan Stanley is the executor of the trades.

Accessing the publicly available register of Golden West Resources it can be seen that the stock is coming out of shareholder Morgan Stanley Nominees (Australia) Ltd

The order being executed is a computer generated order. Someone has to setup the computer to do this. The order is an accumulation order where by the order is executed throughout a time frame. Specific instructions are entered into the computer which causes it to sell when a certain criteria is met in the market.

These automated computer generated orders are meant for institutional orders of large quantities of stock. Example: someone may have $10m of stock in a company to be sold during the week and to get the average price the computer is set to sell to get what is commonly known as VWAP

VWAP = Volume Average Weighted Price

The automated order in Golden West makes a mockery of this service. 100 shares is approximately $30 in value…..and 10 trades over a week gives a total value of $300

Even though there has been a massive market melt down I doubt that institutions have shrunk to the stage where they need to recoup $28 of stock a day!!

Sometimes these orders have moved the stock price up to 2c which is a percentage movement of more than 5%.

EXAMPLE
Friday 13 March 2009
10:04:21 the price was $0.280 volume - 100 shares - value $28.00
Then again today

Wednesday 25 March 2009
10:04:24 the price executed is $0.295.
volume is 100 shares - value is $29.50 and caused price to move down a ½¢

Between these dates many other trades of this type were transacted and ALL 100 share trades were done via Morgan Stanley and stock sourced.

We cast no aspersions on Morgan Stanley however one could be forgiven for thinking this is a bastardization of the system to manipulate the price of GWR shares during this period. We assume Morgan Stanley is not in it for the brokerage……even in these hard times!

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