RE: RE: naysayersHolding management responsible for ONC and ONCY stock performance may not be justified because the share price is determined by the market. I agree with you that shares are currently trading at a fraction of their fair value and believe that they have potential to reach $80 or higher. If you think I am blowing air, check out a 2 or 3 year graph of the stock performance of Dendreon, DNDN, on the NASDAQ. Its outstanding shares are almost twice Oncolytics and it trades above $40. Reolysin has more potential than their product.
The question is why is it trading below fair value. I did not find an explanation reading the comments on this sight.
My explanation is that there is a major trader who is influencing the market by trading to suppress the price. It is not difficult given the low daily trading volumes. The game plan is simple. When good news is released, let the stock react as investors jump on the band wagon. Once the excitement dies in a few days, sell into the market and drive the price down. When there is a modest rally during a trading day, credit a ceiling by placing a large sell order of say 10,000 shares. On slow days, put in a sell order of 20,000 shares at market to crush the stock. Bonus points, if it is the last trade of the day. A professional trader will see the buy ladder before placing the order. The strike price last November was killed by opening sell orders in excess of 100,000 shares.
I am not a conspiracy nut. It was done in 2006 through Mellon Bank. The NASDAQ website reports Institutional Holdings and I have tracked ONCY on it since January 2006. On Jan 6, the NASDAQ reported institutions held 10.1% of Oncolytic's shares with Mellon holding 10%. On Aug 18, Mellon reported holding 7,460,000 shares or 20% of Oncolytics. I sent an email to Cathy Ward and within weeks Mellon sold 659,000 shares to bring their reported holding to 18.5%. On 6 Jan, ONC closed on the TSX at $5.10 and $2.50 on Aug 18. Naive logic says the stock price should be driven up as an institution increased its holdings to an equity stake. A shrewd trader can deceive the market and it is not illegal. In sports, it is called deeking your opponent and in bridge it is called false carding.
Keep the faith.
FYI, on 21 May 2008, Bank of New York Mellon sold over 5,000,000 shares through the TSX and there is no further reporting of this holding. I believe that it is in the hands of the true owner and a suitor of Oncolytics. Robert Ludlum still lives!