balain wrote: Hello everyone,
If you are like me and believe that Liminal’s volume and share price were subject of manipulation this past Monday, August 9, 2021, please share your suspicions with the Nasdaq enforcement department by clicking on the link below.
My suspicions on what happened are described below, so if you want to copy them (same opinion), prefer to describe your own perception of the events, or simply ask that an investigation be done on the transactions involving Liminal Biosciences for Monday 9 August 2021, please do so. We can all do our part to see that the markets are used fairly by all, and that small investors like us have the same opportunity as the big firms to make good investments. The title of my email to Nasdaq: Liminal (LMNL) trading activity Mon 9 Aug 2021.
"To whom it may concern,
Can you please investigate the trading of Liminal Biosciences Inc (LMNL) this past Monday Monday, 9 Aug 2021?
Synopsis:
The Company has 29.94 million shares outstanding. The share float stands at just under 10 million shares. The total volume of shares traded on Monday 9 Aug 2021 was just under 40 million shares. That is 4 x the share float, assuming that 100% of the share float would have been traded.
Since this is practically impossible, let’s assume that a very generous 50% of the share float would have been traded, representing a volume 8 x greater than the available share float. Who can move that much volume?
Liminal usually trades anywhere between 50k shares to 500k shares on a normal day. However, on Monday 9 Aug 2021, Liminal had already far surpassed their daily average in pre-opening, before the markets were even open to most retail investors.
What I believe happened, which would be totally unfair, unethical and illegal, is that a handful of brokers would have received the news ahead of time, and organized the trading of Liminal stock for that day, incurring gains for some of their clients, but mostly losses for the others who were as a result of the transactions, in possession of those shares when the markets closed.
The news released by the Company was a one-time injection of money, overdue by about 2 years, to a Company incapable of generating meaningful revenues. The share price was bound to retrace itself the next day, which it did, incurring investors stuck with the shares, a large paper loss.
Moving those shares generated real money for someone, and that someone is the group of brokers who traded the stock that day. I expect those brokers to be a small distinct group of people well known to each other, which would have allowed them to manipulate the shares and the share price generating large commissions. Other similar events may have taken place on 12 Jan 2021 and 7 Jun 2021, where a small group of broker, possibly the same group, may have manipulated the shares and share price in the same fashion.
Thank you"