Replies to post #1005 on Polar Power Inc (POLA)

[wadirum1]

My thoughts/questions exactly.

The difference is like night and day.

I dug up the repurchase rules. Thanks to Investopedia:

Real World Application 10b – 18 The Four Conditions
1. The manner of purchase: The issuer or affiliate must purchase all shares from a single broker or deal during a single day.
2. Timing: An issuer with an average daily trading volume (ADTV) less than $1 million per day or a public float value below $150 million cannot trade within the last 30 minutes of trading. Companies with higher average trading volume or public float value can trade until the last 10 minutes.
3. Price: The issuer must repurchase at a price that does not exceed the highest independent bid or the last transaction price quoted.
4. Volume: The issuer cannot purchase over 25% of the average daily volume.

So, at most POLA bought 25% of the shares traded. And it appears that all the ask slaps at ever higher prices couldn't have been them.

[southacresdave]

I doubt it was even that much. Once they put in a bid the computers probably jumped over it. If they were smart, they walked the bid up and the computers with it. However, it will only go so far. If selling hits the computers bids too much, then they accumulate too many shares. If no one is buying on the ask back from them so they reduce their numbers down, then they take their loss by hitting the bid themselves if a large order is there. Computers don't have emotions and so they just do what their programming tells them. The thing is there are probably multiple ones at play here even in this low float micro stock so even they compete against each other in different ways. It's why there is always the worry about a panic crash. All the computers pull their bids and things drop. In a way, it's how POLA jumped from $4 to $5 after the 8K was filed 3 minutes before the market closed for earnings. Computers now are programmed to watch and even read SEC filings. They pull their asks together seeing that results beat expectations and let the market determine the new price before they decide to buy, hold or short.

None of this means anything though. POLA needs orders between now and Q3 results (to show backlog is strong at the report time) or else they will be the only buyer left in a sea of tax loss selling that will surely come.