Michael Keane has possibly highlighted a massive flaw in the 1p sell offer limit. I dont have the number of futures bought yesterday for my calculations so these are just rough estimates to highlihgt the issue.
Yesterday morning Keane was valued at 44p scoring a goal and a good PB score saw his price increase to 80p.
Lets say 10,000 shares were bought yesterday (I dont know how many)
This morning his IS reduced to 36p and his buy now price reduced to 78p.
Of the 10,000 shares bought yesterday, lets assume 2,500 IS this morning, meaning the other 7500 are going into the sell queue or people are going to hold.
With the 1p restriction and 900 shares to move the price down 1p it's going to take approx. 30,000 shares to bring him down to 47p, which is going to take a lot of listing.
This will still leave him with around 25% spread.
What's likely to happen now is that Keane's IS price will stay in the 30p region and his buy price will stay in the 70p region (58% spread). Nobody is going to buy for 70 odd pence and if they're still holding now they probably aren't going to IS for 30 something pence.
Keane is likely to be stuck with a buy price of 70+ pence with no real way of reducing the massive spread.
Lots of users are going to be looking at their portfolios this morning looking at the green numbers next to Keane thinking it's amazing, they've made 80% CapApp, they've got big green numbers next to his name when in reality he's not worth that and nobody is going to pay that for him.
In 6 months time Keane will probably still have a buy price of 70p and when OBs come in he's going to drop down to around half of that, then all these people posting their profit margins this morning are going to be crying they've lost 50% of their "profit".