Forced sellingIn 2007 MPE went to 1.60. There were a handful of shareholders with a few million shares who cashed out more than half of their holding. Two of them declared it as a capital gain. CRA came back to them a few months ago and told them it was income, so they had to pay twice as much tax. These two have been selling for a few months, that is why there has been so much supply as they needed to raise hundreds of thousands of dollars in back taxes.
If you are selling to raise cash you need three days for your stock to settle before you can take the money out of your account. Do the math folks today was three days before the last day of April when taxes are due. Someone was forced to sell at any price to raise some money to pay taxes.
The fact that there has been no follow through on previously announced initiative and financings along with boredom and forced selling have brought us to where we are. Hopefully there is some good news on the way and the larger sellers are out of the market.