First understand then take actionI wanted to make sense of this ridiculous drop before making any rash decisions. It turns out short sellers are behind it and using the same tactics and shenanigans they have been using since this short selling saga started a few years ago when they dragged the price down to $4. Marc Cohodes sued the company claiming they made him lose money by shorting them without taking any personal responsibility for his investment decisions. Short sellers instigate phoney lawsuits to trigger a Pavlovian reaction from unsophisticated retail investors to force them to sell in panic. Same old tactics and given what is at stake right now (well over $250 million) anything is permitted in their short selling book.
If you want to understand what’s going on here are two links :
https://www.cbc.ca/news/canada/toronto/home-trust-hvac-rental-contracts-1.5067957
https://www.cbc.ca/news/canada/toronto/oeg-hvac-lien-1.3879196 In essence they blame HCG for lending money to companies with questionable or unpopular practices. Imagine your subway sandwich is insipid or your Tim Hortons coffee cold or your phone/internet bill outrageously high and instead of dealing with the individual who made your sandwich at that particular store you decide to sue Royal Bank of Canada because they lended money to Subway, Tim Hortons or Starbucks because they lended them the money to start and grow their businesses. With this logic banks and lenders will have to be micromanaging every single individual and company they lend money to.
That is my take on this situation. What do you think? Please share your perspective if you see things differently.