- We tend to protect valuable company assets with security personnel, locks, restricted access and alarm monitoring but the market capital of ASX listed companies, one of the most critical assets, is often completely unprotected from DIVES trades, that’s Damaging Impact, Volumes Extremely Small
- It’s that infuriating $300 low volume trade, dropping your share price over 3%, reducing your market capital by millions, often triggering negative trading momentum
- Typically DIVES trades have a >1,000X negative impact on your share price than it should for the respective volume traded
- DIVES are prevalent, particularly for companies outside of the ASX 300. Analysing over 200,000,000 ASX trades, we see:
- ~80 DIVES trades occurred every trading day, negatively impacting on average ~$350 million of market capitalisation
- DIVES are widespread, occurring in the majority of ASX300 to ASX1800 companies
- Where a DIVES trade occurred, 73% of companies ended that day below their opening price (i.e. down day)
- DIVES create negative trading momentum that often continues for the trading day, and in subsequent trading periods
ASX listed companies, typically outside of the ASX 300
DIVES trades (Damaging Impact Volumes Extremely Small) are widespread, occurring in over 70% of ASX300 to ASX1800 companies
Where a DIVES trade occurred, 73% of companies ended that day below their opening price (i.e. down day)
DIVES trades create negative trading momentum that often continues for the trading day, and in many instances in the subsequent trading periods
- We use our proprietary software and approach monitoring and analysing ASX trading information in near real time looking for DIVES trades (Damaging Impact Volumes Extremely Small). For example, the infuriating $300 low volume trade, dropping your share price over 3%, reducing your market capital by millions, often triggering continued negative trading momentum.
- We identify the DIVES trades and their impacts, providing it to you via periodic reporting
- Great sentiment but it’s not entirely right…DIVES trades (Damaging Impact Volumes Extremely Small) destroy value while underlying business performance can take a long time to be understood, recognised and reflected
- Stakeholders (shareholders, suppliers, customers and employees) get frustrated / concerned with share price declines and are less inclined to support over time
- Negative price momentum may mean you are on a much lower valuation base when raising capital (which most small ASX companies do every 12-18 months) creating higher dilution and lowering potential capital raise proceeds
- We only deal with ASX companies who like us act with integrity
- We enter a plain English 1 page contract with you where it’s acknowledged and agreed:
- Not to provide any inside, price sensitive or confidential information
- Not to influence or attempt to influence any trading activities
- Communication will be one directional from PYMC to You and limited to the agreed reporting deliverables
- Any trades are conducted by a separate entity to PYMC, within strict market integrity rules as detailed in the engagement contract. Such trades are for their own exclusive account and benefit, at their sole discretion with no obligation to trade, conducted with profit intention and at their risk.
- PYMC does not explicitly or implicitly offer any guarantee with respect to your market capitalisation or your share price.
- In addition, we have reviewed the position legally by a tier ranked Australian national legal firm, to ensure no unintended issues.
- PYMC is an Australian company founded and run by its managing director Darryl
- Darryl has over 20 years of ASX experience, primarily focussed on ASX companies outside of the ASX300. This included leading 2 IPOs as CFO and together with the various company teams delivered substantial value in his tenure including ~15X (Mining), ~10X (FMCG) and ~5X (Finance/Tech)
- PYMC is the expert in this field, using bespoke software and approach which PYMC created, all combining into our secret sauce
- Protecting market capital requires laser focus every trading day, all day…It’s the only thing we do. If you were doing this, it would distract and consume your focus off your main game, your business
- PYMC service is effective, and incredible value by people with integrity. Why would you do it any other way?
- PYMC’s service is unique, and very different from Investor Relations which is provided by many firms across Australia. While PYMC and IR are not mutually exclusive, the below table summarises some key differences:
| PYMC | Investor Relations | |
| Approach | Direct, proactive | Indirect, seeks to influence potential investors |
| Timing | Fast impact | Can take many months to see benefits |
| Resource & time commitment | Low to nil | Medium to high |