Re: The Destruction Of KWG - Manipulation of KWG's SP?
in response to
by
posted on
Jan 01, 2014 10:33AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
RJ,
Your post says, among other good points, "Checking level two, you will see many different brokerage firms all with what seems the same goal, keep KWG low. Many times trading in house to get a low daily price, either on the open or the close. We see throughout the day sometimes asks in the millions and then removed, and then re-appear. This AM before opening at 0730 AST the asks were 24 @ .045. Then at 0823 asks 365 @ .045. This has been going on for months."
First, a very nice year-end observation. Let me chime in with a few of my 2014 comments:
- I would suggest to modify the title a bit to amplify your point stated above, e.g. "Manipulation of KWG's SP", or "Concerted Manipulation...", or "Illegal and Concerted Manipulation...".
- Of course, management would know who's behind this illegitimate scheme, but what can they do? Her are a few suggestions:
(a) buy up all the cheap shares the moment they are offerred, and put in buy orders at higher prices. Perhaps an expert trader would know how to do this, even with the help of computer trading software (i.e. play the same game). The lots should be large enough to have any significant impact, e.g. buy order of 10000 shares @ $0.05 or $0.06/share (I give these prices as examples, perhaps you and other posters could suggest a better alternative). It should be noted that the amount of money spent is trivial, e.g. 10000 x $0.05 = $500.00, chump change, but the message would be significant). Question: Is this considered as a legitimate activity for a company to support its share price (KWG had share buy back scheme before);
(b) rexpose the culprits (in the cases you mention above) and drag them out in front of the Regulator with enough evidence, so that the Regulator cannot ignore these (apparent, or is it blantant?) violations. One phone call, or a letter of enquiry from the Regulator to those culprits should send them into hiding.
(c) How can the tactic you mentioned "We see throughout the day sometimes asks in the millions and then removed, and then re-appear." be dealt with? Can management (or even us?) catch them off guard by snapping them up the moment they appear, noting that 1M shares @ $0.05 would amount to only $50k, which is perhaps a tad rich for individual retail investors, but this amount is not that much for institutional investors (or some "guarding angels" if they don't have worry about internal rules for buying shares below a certain price...is that why KWG wanted to consolidate the share, 50 for 1 super-share?). Soon enough these guys will run out of shares that they have (or pretend to have at their disposal).
(d) for small lots, retail investors can handle that themselves, with the belief that KWG's share would appreciate. They might just want to gamble a bit by rolling the dice. In your examples above 24 shares @ 0.045 = $1.08. Even if 24 means 2400 shares the amount is still small: only $108.00.
(c) your punch line : "After the past, at least three years of manipulation, I say enough is enough, and more voices need to join the fray and demand some answers, both from KWG management, and the Regulatory Authorities." I would fully support your resolution. Why don't you spearhead this effort by drafting a letter to the Regulator with copy to KWG to bring this (blatant?) illegitimate activity to the attention of the Regulator. In your support, I would send a copy of your letter, along with any additional notes I may have, to the appropriate address. BTW, what is the most appropriate address for the Regulator?
Yup, enough is enough. It's time to DO something. As a reminder, our KSU (KWG Shareholders United) group had a count of more than 10% of the OS. Management knew about KSU and they should take advantage of this support. Also, note without the options and warrants Management has something like 2% (if my memory, after last night, serves me correctly). With wts and options Management control would jump significantly. Perhaps, KWG could change the options (and wts?) strike price and encourage BOD members and Management to exercise their options to beef up the SP and to have better control of the company (note: CLF still has some 16% of OS).
The hope of KWG longs is that if the (political) winds blow in the right direction, as far as the infrasture is concerned, i.e. the RR, we could perhaps retire in the Cayman Islands.
That's all folks, my first message for the New Year. Cheers and Happy New Year.
goldhunter