GREY:VITFF - Post by User
Comment by
MVargason Mar 16, 2016 5:06pm
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Post# 24666760
RE:Buyers are watching like hawks
RE:Buyers are watching like hawksI am one of those buyers watching like hawks. A seller from RBC has been either liquidating a large position or has been trying very hard to keep a lid on any price rise. Without this perpetual selling that began in December, VIT's share price would have been much higher.
If it is a liquidation of a large position, then they have to run out of shares sooner or later.
Consider these facts:
In December RBC sold 1.157 million shares - second onlt to Scotia at 1.159 million. December selling could have a high degree of tax loss selling so nothing remarkable about those numbers.
In January RBC sold another 1.536 million shares - second to BMO, but in February they really picked up the pace selling 4.648 million shares - twice as many as number two.
So far in March RBC has sold 3.635 million shares. Today they were hitting all .205 bids until the bid dropped to .20 and when the .205 bid was replaced, they hit that as well. They lost a bit of control when gold spiked today and VIT's share price got to 0.225, but they manged to sell it back down to close at 0.215. 60 of the last 61 trades today were RBC sales.
If not a liquidation by a Fund, then it may very well be price suppression by naked shorting or sacrificing a few millions or 10's of millions of shares in advance of a takeover bid. Such bids usually are at a premium to the average closing price of the stock for the previous 20 or 30 trading days. The lower that average is, the lower the takeover offer and the better deal it appears to be.