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08/09/16
12:05
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Originally posted by Lies&damnlies
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I am not sure that people on TFC people on HC understand how shorter's work.
As per my post in the early hours on the 5th of Sep before the market opened I suggested a one day play that the shorter (u guess it) would make. They didn't. In that post I pointed out days in past history when they played (go back to the dates I wanted you to see that the market for TFC swung in a range of 10-15% on that day . I wrote another post on the 30 of August about Long, medium, short and very short days( insane) predictions go back an have a look.
The day I speculated about on 5th Sep with a 10-15% swing from highs to low is still to come within the next 10 trading days.
How shorter's work these one day trades. Several trading platforms work on the basis that you cannot set a buy price of less than 5% of the last traded stock. Your going to work before the market opens and TFC's current stock price is $1.515 so the cheapest price you can set a buy order on a pre-market opening trade is if your under the 5% restriction limit is $1.44.
After the opening of trading with some very minor opening trades with very slender volumes the price could be forced up to $1.53. Anyone at this point could considering the 5% limit after the last trade could only set a buy price of $1.455.
Lets say that our shorter's are playing for a one day 11% loss from last previous day price of $1.515 price to a low sometime during the days trading of price of $1.35. The point is to trigger stop loss trades.
Our pre market traders and our opening market traders orders will be completed but will not be open to the lows prices set by the stop loss traders.
During the day the BOTS will operate sending the share price up,up, down,down,up,up ,down,down,down,up,down. During this process the shorter's will absorb any significant volume triggered by stop losses being activated at well below the prices set by our pre market and just after opening market traders set.
That's how they work.
Like me on those days you want to get in one the action you need to be watching the daily trades on the set buy the shorter's. Currently I would like to get in again at $1.38 but because of the 5%ess rule I have to wait until the price drops to $1.45 before I can set a low buy $1.38 price.
Remember many times in these huge one day shorter's plays that the day to day closing prices are not that big off a loss and that the next days closing prices are a gain.
You can see that the shorter's through their trading algorithms have the advantage. To get the special prices you need to watch through the day which I do sometimes but not often as I have also another life.
Shorter's are a plague on our stock. As I have explained in many of my previous posts they are artificially keeping the stock price down.
For the best defence my recommendations are:
Firstly to continue to increase the dividends. For a the last couple of years the dividend has been set at 3c. This year 3.2c would have shown that this company is progressing rather that staying the same, not indicating growth. What's happened and cannot be changed, however next year 3.2c would indicate a growing company.
Secondly, because of this excellent harvest this year and guaranteed income declare a small interim dividend of 0.3c. Its minor to the books but would make a huge impact on how the company is viewed.
Thirdly. The companies dividend reinvestment policy sucks. Currently onlyshare holders of over 16,667 shares are entitled to the dividend reinvestment plan. Because of the $500 limit in dividends are entitle to participate in the dividend reinvestment plan it means that only shareholders with over $25,000 of stock can participate. Smaller share holders would not be plucked by the shorter's so easily if they new that in the long term the company offers growth and their shareholding is increasing. Solution is to set the dividend reinvest plan limits to $100 so that at current levels the value of the share they hold is $5000.
Simples
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Hi Lies,
Not sure where your DRP info comes from? Just had a quick look at the TFS pdf and I can't find anything in regards to what you're alluding to....if your info is incorrect, then TFS is providing misleading information to shareholders via their "features and rules" of DRP and their website.