rgupta
Regular
To my belief or disbelief, if someone wants to buy a stock in good quantities there are 2 ways.That's a very risky play, I don't believe they would take such a risk. While buying back, they would likely end up at the same average share price, but could be higher or lower, no certaintees for them. Further there is the legal risk.
1. Buy in open market and damand will shoot the prices to moon.
2. Wait for right opportunity and add fuel to the fire ( short the stock) to a level that everyone sell it in shock.
And I don't think second strategy is bad either. Instead of buying stock on more than 1 dollar they can buy a good quantity on less than a dollar. Then clear the shorts from their buy volumes.
Now in brainchip stock there is a planned stock attack and many of the retail holders were speculative buyers as well. If the stock goes down a certain level speculative buyer has to sell the stock.
Management cannot buy the stock because of NDAs and insider trading. Receipts are down for 2-3 quarters and it is their best bet to accumulate.
The third catalyst is akida 2000 which can postpone the future developments and agreements to an extent.
Just a thought process idea.
Dyor