After a 4% decline in Bowleven (BLVN) yesterday, despite the seemingly positive news, shock horror it is now up 16p or 4%. Looks like another classic case of AIM stock manipulation with the Market Makers tempting nervous private investors to dump their shares yesterday and "sell on the news" and of course there was the usual nonsense on the bulletin boards that Bowleven was going down, down, down. The Market Makers love it because as investor nerves grow, trading increases, volume of sales grows which is great because they make money through the spread (the difference between the buying and selling price). Plus they can gather together some stock because they are likely to have some big institutional orders to fill or will have shortly.
Now on Xcite (XEL) it looks like a similar story. News is expected anytime on the rig (deadline is the 15th of Jan) and hopefully the CPR (the Competent Persons Report) for the Bentley North Sea field upgrade. The last 2 days the shares have failed to break the £4 barrier on relatively low volumes so instead the market makers thought they could generate some business through more trades by walking the price down. Xcite is currently down 9.5p or 2.2% as those nervous private investors give away their valuable shares to the Market Makers who will stash them with thanks for the time when the RNS's will come (and they will.....hours....days who knows) and then they can sell them back at a much higher price and fill their big orders.
Please don't be duped. Xcite is not going down to 300p. They don't have a duster, the flow test wasn't a
dud, the CPR won't come in March etc. etc. I'm waiting to hear the rumour on iii.co.uk that the rig has caught fire or some other nonsense. Keep your nerve. Contrarian Investor is!!
