Retail vs Smart Money.
It is all based on the money value of each trade. In my experience the average retail player spends 1-3K on a penny play.
Look at the last 5 days of trading for AAD. In the last 5 days there were a total of 64 trades. Of these 42 were for blocks of 10,000 shares or more. 20 of these blocks were for 20,000 shares or more with several 40,000 share blocks going through.
The stock was trading for .40-50 which is $4,000-20,000 per trade and an average of $10,000 a trade for the past 5 days. Most retail buyers don't throw around that kind of cash in single blocks. In addition, there were only a couple small trades which tells me the retail public doesn't know about the stock or doesn't care. Also Greenline (the most popular retail broker) was only the buyer of 23,000 shares....11,000 of these were mine. This also tells me the retail market isn't watching the stock.
And what are the implications
Lets face it....the smart money is the big money. The big money is always the first one to know everything. They didn't become big money by not have inside information and the top analysis teams. At the bottom you will see large chunks being bought and at the top you will see large chunks being sold.
Often you will not see actual chunks being sold but will see large market orders go through that all add up to one big chunk. The smart money is selling its big block to the retail foke in small chunks. The opposite is true for bottoms.
Will AAD fly? I hope so since I bought a nice chunk on Wed.
In the past 5 days trading days Midland has bought 428,000 and Wolverton bought 394,000 both without selling any shares. That is over $400,000 in cash value. There are 14 houses net buying and only one house (Canaccord) net selling. Now one could argue that the one house selling has some inside information and is getting out of there position as fast as possible. However if they sold off like this they would get investigated for insider trading. In addition, if something bad was up I doubt another house wouldn't know about it. Even if there wasn't something bad up....shouldn't 1.3 million shares being dumped on the market drive the price down not up?? I also doubt that 14 houses would be stupid enough to buy the stock and nobody was smart enough so sell into a price rise.
I normally don't play the pennies (expect JDX <gggg>) but when I saw this trading it smelled like something was cooking. I am reading to dump the first second I see weakness...next week should be interesting.
Best Regards
KEITH
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