RE: RE: RBC I believe that you may be missing the key point of the comment about the day traders.
I do not believe that the general was criticizing or even talking about people booking a profit, but he was talking about a pattern whereby traders are continually taking down side bet on this stock, nakedly selling (shorting) in the hope of buying it back cheaper bellow.
Heck even you mention that: "If history repeats and UBR's share price drifts down B4 the next news release, your advice will back-fire on you, IMO."
There are many traders desperate to play that game and they are looking for stock were they can make a puny 0.005 on a spread between 0.045 and 0.05... and remember that these traders also play between all the markets since in addition to the puny profit from the trade, they get some more money from these exchanges since they are paid to generate volume on these market...
Those of us who have been following both the story and the trading are fully aware that we have a small number of traders playing this games on UBR, but I do believe that management as been doing the right steps to gradually mitigate the powers of those leaches...
First the share consolidation last year was very crucial because it made the stock much tighter, it allowed, during the last year for a very good share consolidation to take place as a good quantity of the weak hands sold there position therefore allowing the Company to get ready to move forward.
Second these seem to have understood the new paradigm shift in the market wherby 70 % of the volume is made of phony trades from day traders, and this therefore implies that Market Volume is not their friend anymore, but it is actually the enemy of the Corporation, since high volume days only always attract more leaches traders then investors. So they key point is not volume anymore, but strategic buying, and that seem to be what they have done.
The market clean up was made while nobody was really paying any attention to the story. Volume was steady and the traders were making money doing the simple trade of selling first and buying after.
As this happen, they became complacent and when the Company issues very good news and it still attracted a big seller because of the general market conditions of the gold market, they saw an opportunity, cleared out there small shares inventories and then took short position below the 200 days moving average since the stock had never really broken that mark in one year..
Take a look at the house position for the last two months and you will notice the pattern, the traders did look smart making there small 0.005, but when I saw appeared on Friday at 3 a buy order for 300 K @ 0.05 on Alpha then I understood that the traders are getting nervous...
|
House Positions for C:UBR from 20130501 to 20130621 |
|
|
|
|
|
|
|
|
|
| House |
Bought |
$Val |
Ave |
Sold |
$Val |
Ave |
Net |
$Net |
| 2 RBC |
614,000 |
35,005 |
0.057 |
112,010 |
6,297 |
0.056 |
501,990 |
-28,708 |
| 81 HSBC |
570,135 |
31,472 |
0.055 |
100,500 |
4,522 |
0.045 |
469,635 |
-26,950 |
| 80 National Bank |
275,333 |
15,936 |
0.058 |
63,000 |
3,347 |
0.053 |
212,333 |
-12,589 |
| 85 Scotia |
549,975 |
27,813 |
0.051 |
411,763 |
24,703 |
0.06 |
138,212 |
-3,110 |
| 99 Jitney |
141,000 |
5,795 |
0.041 |
78,000 |
3,755 |
0.048 |
63,000 |
-2,040 |
| 36 Latimer |
14,748 |
780 |
0.053 |
4,243 |
225 |
0.053 |
10,505 |
-555 |
| 22 Fidelity |
10,000 |
450 |
0.045 |
0 |
|
|
10,000 |
-450 |
| 33 Canaccord |
0 |
|
|
1,000 |
50 |
0.05 |
-1,000 |
50 |
| 57 Interactive |
0 |
|
|
9,125 |
574 |
0.063 |
-9,125 |
574 |
| 46 Macquarie |
0 |
|
|
15,000 |
675 |
0.045 |
-15,000 |
675 |
| 88 Credential |
50,400 |
2,520 |
0.05 |
77,400 |
5,584 |
0.072 |
-27,000 |
3,064 |
| 19 Desjardins |
38,000 |
2,045 |
0.054 |
78,399 |
4,686 |
0.06 |
-40,399 |
2,641 |
| 124 Questrade |
14,000 |
775 |
0.055 |
108,250 |
5,491 |
0.051 |
-94,250 |
4,716 |
| 1 Anonymous |
66,000 |
2,780 |
0.042 |
173,000 |
8,050 |
0.047 |
-107,000 |
5,270 |
| 7 TD Sec |
1,045,000 |
51,970 |
0.05 |
1,206,251 |
65,653 |
0.054 |
-161,251 |
13,683 |
| 79 CIBC |
192,400 |
9,889 |
0.051 |
506,177 |
22,083 |
0.044 |
-313,777 |
12,194 |
| 9 BMO Nesbitt |
232,000 |
10,440 |
0.045 |
868,873 |
41,975 |
0.048 |
-636,873 |
31,535 |
| TOTAL |
3,812,991 |
197,670 |
0.052 |
3,812,991 |
197,670 |
0.052 |
0 |
0 |
I cannot predict the future, but one think is certain the cost to these day tarders to repeat there little game as just double, and there profits marging have been cut down in half, so there is good chance that they shoudl move on and let the stock move even higher...