Over 670,000 Shares Traded YesterdayChange is happening and yesterday’s trading in Oncolytics is another indication. As I posted the other day, the NASDAQ is reporting institutional investors are jumping on the Oncolytics/Reolysin bandwagon. Based on Dec 31 disclosures, the number of shares held increased by them increased by 8.1 million shares to 9.6 million. This buying activity goes a long way to explain last year’s rally.
I am chuckling as I consider the problems that the buy side manipulators are having. I do not think that they like my frequent posts to retail investors advising them to hold onto their shares. With only 69.9 million shares outstanding, Oncolytics’ shares are becoming a scarce commodity. The stock price has to go up. Why sell now?
Despite CravenRaven’s concern “that the markets are wrestling with international political developments, Loss of Libyan oil production...Iran Navy trolling through the Suez...Christchurch Earthquake...MORE mid-east turmoil... over the past few days...”, I do not suspect that Acuity Investment is selling any of their recently acquired 6.5 million shares. None of these international developments have anything to do with the market pricing of ONC and ONCY. Last time that I looked, Oncolytics was cancer therapeutic development company steam rolling along with one success after another to commercialization of Reolysin.
I find the following table of trading volumes over the past few days very interesting.
| | NASDAQ | TSX | Total |
| Wed. 16 Feb | 147,829 | 148,705 | 296,534 |
| Thurs. 17 Feb | 36,609 | 32,206 | 68,815 |
| Fri. 18 Feb | 74,661 | 80,086 | 154,747 |
| Tue. 22 Feb | 191,883 | 219,324 | 411,207 |
| Wed. 23 Feb | 230,571 | 441,113 | 671,684 |
| Thurs. 24 Feb (2:30) | 47,030 | 69,568 | 116,598 |
| Thurs. 24 Feb | 81,080 | 135,893 | 216,973 |
| Ave per RBC Direct | 170,796 | 191,587 | 262,383 |
It appears to me that trading volumes are higher when the buy side manipulators are actively managing the stock price by selling blocks into the market. See my post on Tuesday, “The Play The Ploy” for specific examples. Without their intervention, Oncolytics’ trading volume is slow as retail investors hold onto their shares. The manipulators seem to me to be spinning their wheels.
Yesterday’s volume was extraordinary. The market opened with a modest press release saying 10 patients had been enrolled in a UK colorectal trial. The manipulators sold into the market to depress the market price. I like to think that institutional investors took advantage of them and bought everything that they were willing to sell.
Another explanation was provided by rjc2827 with short sellers protecting their positions. I do not see the logic of shorting Oncolytics. You are looking at a possible gain of $6.00 and change but are carrying the risk of the stock jumping to $18 overnight. To continue to short to protect a faulty short position is a recipe for disaster. It reminds me of the rogue British trader, Nick Leeson, who brought down the Barings Bank.
I hope that the short sellers include many of the buy side manipulators. I can imagine the manipulators being over confident and trying to double dip. They short to depress the market price. They are hoping to stimulate more sales and recover their shorts at a lower price. It appears that the buy back has not occurred. They may feel safe by being able to cover their short position with their existing holdings. I am not sure if they are quick enough to appreciate that they have sold those shares at a fixed price. They will miss out on any gains from the partnership deals or other news.