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PetroFrontier Corp V.PFC

Alternate Symbol(s):  PFRRF

PetroFrontier Corp. is a Canada-based junior energy company. The Company is engaged in exploring for and the production of petroleum and natural gas in western Canada. It is focused on developing two Mannville heavy oil plays in the Cold Lake and Wabasca areas of Alberta. The Company has interests in approximately 16 gross (15 net) sections arising from several joint operations with the wholly owned energy companies of the Cold Lake First Nations (CLFN). The Company also has a joint venture agreement with the wholly owned energy company of the Bigstone Cree Nation (BCN), covering 1,024 gross (922 net) hectares in the Wabasca area of north-central Alberta, of which half has been earned as a leasehold interest. Those interests are located between CNRL’s prolific Brintnell enhanced oil recovery project producing approximately 50,000 bop/d of heavy oil and Cenovus’ proposed 10,000 bop/d thermal heavy oil project.


TSXV:PFC - Post by User

Bullboard Posts
Comment by JB3729on Aug 28, 2012 7:11am
239 Views
Post# 20267679

RE: Who's jumpimg?

RE: Who's jumpimg?

That 1/2 mm ask is very suspicious. If somebody wanted to sell, why would they scare the buyers away?

I suspect that a MM wants to cover a large short position without running up the share price. With the share price capped at .72, the MM can buy to cover any other .72 sell orders. Of course the MM would have to add any .72 buy orders to his short position. If sell orders come in below .72, the MM will also buy these to cover.

In the event that a large buy order comes in at .72, the MM will allow a small partial fill and pull the 1/2 mm ask. MM's like to fill their customers orders. Often times this leads to large unwanted short positions that must be covered. When this happens, the MM's try to intice shareholders to sell.

There was quite a bit of volume yesterday at .72. In spite of this, the number of shares for sale at .72 remained the same. This adds to my belief that the 1/2 mm ask is for MM rebalancing. Also, if the MM can balance his position by dealing with other MMs, he will pull the ask.

This is all IMO. I have read that this is done, but, don't know if it's what's happening now.

JB

 

Bullboard Posts