mutual funds need to cover their redemptions An advisor said that the problem with PRY is that in the current "down" market for Canadian energy stocks, many mutual funds / institutional investors, need to raise cash to pay off those who are redeeming (selling) their fund holdings.
PRY is low hanging fruit - i.e. easy to sell to raise some cash to fund the redemptions.
The question then becomes - why sell PRY to fund the redemptions, and not another stock ? They will make a choice about who the winners and losers will be. Winner "A" this season, once sold, will help to buy more of the losers, now much cheaper (PRY), next season.
And believe me , they know what the huge potential upside is for PRY.
So, once the energy sector is back in favour, watch the rotation back into these stocks.
And the institutions who were once selling PRY ? They will be buying back in at lower prices as new money enters their mutual funds.