RE:RE:RE:Dividend cut?johnathamilton wrote:
I think you're right and typical of the lack of Canadian Security law enforcement, this have probably been leaked to key players. Seen it so many times - Hollinger was classic - but I know investors who won't touch Canadian stocks because of it.
@johnathanhamilton
The writing is on the wall - no need to leak info, the key players as you say are the MMs who owns 90% of all outstanding shares and has models of every commodity company out there and if the underlying commodity has collapse the value of the company has to as well - the assumptions made at least 90 oil and will never drop that price, heck even .90c US to CDN forex. All that assumptions has been obliterated so to the valuations of the company.
The MMs don't invest blindly because of some guest on BNN that recommended this stock or other oil companies - everytime that Nutall guy goes on BNN and recommends an oil company the stock pops as retail buys in while he dumps it on them - he's not an idiot either he'll take a loss of 10% if he thinks there's no traction on the trade and get out of it and buy it back later on and say yeah we've added to the position because we still like it and then dumps it when it pops because of retail buying. I've seen many times here, people get excited for a mere 10% gain - while MMs dumps it on retail.
again look at all the commodities out there - gold, base metals, met coal, uranium and look at the companies and see where they were at the peak vs the collapse of the underlying commodity and you'll see that every company has taken a haircut of minimum 50% while some went belly up. no company was spared.
Like I said it will also happen with oil and oil companies - no exceptions, natgas collapse is coming it's been spared but we got a preview of it earlier today at 3.933 - oil saved it but any day now and it collapses worse than oil down to 3 or sub 3 level.
I warned everyone that the safe play was to get out of it as late as last week heck even two weeks ago and everyone here was celebrating when it rallied past 3. Sadly no one listen, I told everyone to read the balance sheet or learn how to - ask an accountant for crying outloud instead people here were nitpicking and who pays the dividend when a stock is shorted - people here still don't get the point I made on that topic. What was the short position then? it was a measly 0.01% or some 254,000 - can't remember the exact number - as of nov 17 short has risen to 4.35m, when the next report comes out it should be at least 10m if not higher.
A guest on BNN also recommended on selling it - also concern with the balance sheet, he shorted the stock - he took a lot of people's money here for his own clients, minimum amount to invest with him? 500k - short LRE and you've doubled your money in the past week or so. He was also ridiculed here.
Just stuff I remembered from this board over the past week..