GREY:TBTEF - Post by User
Comment by
PUNJABIon May 28, 2014 8:42am
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RE:Too many consective closes at the bid price
RE:Too many consective closes at the bid price
Anyone can call IIROC & request to look into trading of a broker. They are supposed to keep an eye on trading but it is hard to closely monitor all stocks. They will look into all complaints.
It would not take long for IIROC to look at Morgan Stanley closing trades & figure out if it was a deliberate attempt. I would say it could be a few minutes for an experienced investigator.
They can check if all the closing trades / MOC imbalances orders are coming from the same account & if that account has a short position. Plus an explanation as to why they are doing it consecutively, day after day.
Closing price is very important, the market cap of the company & the market value of the portfolios which contains that security is determined by that, plus lot of technical indicators use the price. Margin requirements are also determined by the closing price. It is important for TBE to trade above $2.00 because it will become marginable. One of the reason that TBE sold off so aggressively was that it was pushed blow $2.00 & investors holding the stock on margin may have to shed their position or some shares.
Now it is interest of short sellers to knock down the price & have a lower close even by one cent a day. While longs would like to have a higher price close. Even if you have a long position & you want to sell a large position over number of days you want the stock to close higher so that for the remaining shares you get the best possible price.
Now if Morgan has a large long position to liquidate why does he sell during the day when every bid price has over 100k share instead of knocking down the stock will just a few thousand shares daily. This is a very valid concern & should be investigated.
It is in the interest of the shareholders & the company that they report this trading pattern & seek an explanation.
I do not know if TBE has investor’s relation department but someone should be monitoring the stock short position or any stock price manipulation & answer investor queries. They should also find out what happened to the 36m shares that were sold at $2.45 market transaction price & $2.40 insider report. I have not checked recently but last time I checked the buyer had not filed an insider report for the purchase. It is possible that the order may have been broken up in small lot.