RE:Update on Save Canadian MiningThank you Dave24, it certainly is an "interesting watch"
For those who didn’t have the time to view the video, on a topic that has been a key personal concern for many years, I provide a few selected extracts:
- SMC(Save Canadian Mining) is an advocacy group set-up to attempt to stop predatory short-selling… not against short selling if you borrow the stock, but naked short (selling a stock that is not owned or borrowed by the seller) leads to downward price action and that is a problem.
- Research by Murenbeold Co. has clearly identified that identifies from day one(2012 uptick change) at 100 the Canadian mining stock index is down at 35.27 and the commodity index is at 93.07. This generally means that the stocks would have to go up 2.5 times across the board to get to normal. Think about that if you are an investor in mining or if you are a Canadian mining company with its impact on ability to grow. The decline in stock prices is not linked to the decline in commodity prices.
- Since the tick test was removed the number of issuers has declined dramatically. Equity Capital raised is a fraction of previous amounts.
- A 62.5% spending drop on local economic activity by Canadian mining companies.
Working with the Ontario government-appointed Task Force on this issue:
- Ideally the best solution would be to re-instate the tick test
- Make it Illegal to cover short sales in Private Placements. After you have made a discovery, Hedge Funds know you are coming to raise capital for development, they short your stock and then they cover in the Private Placement”
- Impose and Enforce new trade settlement Rules…no more T + 2 + 10; New proposed T + 2 + 4 with hard buy-in…. 2 is settlement days after a trade, but before you “get bought-in” you have 10 days. In reality what happens is the Hedge Fund flips the stock to their next numbered company and never cover…. These things don’t show-up in short reports because it is not ever marked short…
Peace,
ElJ