Forum Archive Index - February 2000

["Adam Rands" <adam@iguana.co.nz>]

its not manipulation.. its just stupidity

it happens all the time.. especially in aussie with the specy non liquid
stocks and all the mums and dad investors pilling in at whatever price.

if you work out the volume weighted average price (VWAP) u will find the
true price of a stock for any one day...

however in saying this, manipulation may occur in small stocks for various
reasons

lots of companies/brokers are running "internet sharemarket games".. these
games sometimes attract serious prizes ($100,000 etc)

most of these games work on the basis of valuing a portfolio at the end of
the day.. many sneaky people (i myself have thought about doing it) buy
virtual stock in the game and then ramp a small cap stock on the valuation
day (this may cost them a few hundred dollars).. but as long as the last
trade has gone through at a crazy price the stock is deemed to valued at
that thus making their virtual portfolio worth $$$$$$$.

i have considered doing this on the NZSE sharemarket game (simply to
highlight their lack of sophistication) but alas have never had the time to
bother..

something to think about..

Adam













-----Original Message-----
From: Robert Nottage <robnottage@yahoo.com>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Thursday, February 17, 2000 11:17 AM
Subject: [sharechat] Renaissance manipulation?


>Hey guys,
>Renaissance opened today at 55c. Someone then bought
>3500 shares at 61c (how?)for the princely sum of
>$2135. So immediately the price shoots up 10.9% and
>Renaissance is No.2 on the Top 10 Rises for today.
>There is now a big gap between buyers (55c) and
>sellers (61c).
>What do the experts think? Manipulation????
>
>p.s. I don't think anyone is falling for it though
>because the stock has not traded since that transaction.
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