Selloff Statisically Significant - Something is upThe magnitude of todays sell-off was from a statistical point of view - significant and profound and deserves some explanation!
In this most recent day of trading closing price has shifted from the 68th percentile to the 19th percentile - this represents a downward 49% shift along the probability curve of closing prices since Aurora origninally announced the deal to acquire MedReleaf back in April.
This sell-off didn't trigger a circuit breaker and seemed to involve primarily TD and CIBC driving the ask price down so I don't buy the argument that it is simply due to stop losses and shorting. Those who bank with these brokers should make it a point to call them and ask them why they are driving the price down.
Statistical bottom will be reached at $5.34 per share - a price that was established Aug 14th as a result of the shorting due to MedReleaf principals cashing out 150 million ACB shares. The question is What is driving this latest selloff? I see ACB has KPMG as their new accountants. Is there anything in the previous filings that may have given these banks pause for concern? If so, it should be shared.