AR dropped 9% last weekGold dropped 1.7%
Gold Miners Vectors (GDX) rose 0.8% and TSX Gold rose 3.25%
So what happened this week and yesterday with AR?
Officially AR dropped 3% (1.50 to 1.45). If you count the gap up to 1.58, the drop was 8%.
Somebody dumped 175K shares on Friday at 9:30.
Thursday's close was 1.50. It opened up at 1.58 and 150K of shares were dumped by 9:45 and the price dropped to 1.48. Another 25K was dumped by 10am and the price dropped to 1.45.
It looks like most of selling was done at 1.52-1.54 (looking at a 5 min chart)
The buyback of 160K of shares at the end of the day was at arounfd1.48.
It looks like whoever shorted probably made around 4-6 cents a share
AR tends to open up much higher at the bell compared to more volume intensive companies like BTO (where you can gain on momentum). AR: Dumb money (like me) sees the gap and wants to buy in on momentum. They are in fact buying what smart money is shorting. Dumb money that bought in previous days or the current day start’s panicking and sells back to smart money.
It all comes down to AR not having enough volume. It typically trades at 300-500K. When the shorters come in, you’ll see 700K-1M. They typically sell 150-200K and buy back later in the day. This adds 300-400K to daily volume