Surge Energy Inc (Alberta) T.SGY

Sellers from cheap financing blocking the move

[PUNJABI]

This stock continues to be a laggard in the sector. Since the reverse split, this stock has seriously underperformed.  Pre reverse spilt it is still under a dollar and trading at $.76. The last massive dilution and the reverse split is one of the main reasons.


Yesterday there was continued selling by Peters who sold another 246100 shares along with Anonymous who had net sales. There would have been little HFT, some institutional buying and selling from Anonymous but net sales were 489141. CIBC is the biggest HFT. Trading stocks for small spreads with bids and offers on the market book.

Some of the buyers of ridiculously low-priced dilution are selling and blocking the run-up in share price, chances are few old shareholders are also selling at a loss and moving on as they will be getting tied of this stock as it continues to underperform other oil stocks.  That low prices massive dilution and reverse split were very amateur moves by the CEO. Without the reverse split most likely the stock would have been trading well over $1.00 even with the massive float that would be over $8.50 in past split prices

GMP bought 206500 shares along with some other buyers.

The outstanding shares have now shrunk to 83m it is a very small float and any serious buying from institutions should spike the share price very fast. But they need to absorb the massive number of cheap shares that were issued by the company.  For a float of 83m shares, a volume of 2.1m shares is a big volume and sufficient to spike the share price provided the sellers get out of the way and don't block the stock.

Because of its underperformance, this stock is cheap, eventually, it will get its day as money moves out of other better-performing stocks to laggards that offer better value. These day sector rotation is taking place from the Tech sector to the oil and resource sector.



House Positions for C:SGY from 20220125 to 20220125

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
74 GMP	206,500	1,317,273	6.379	0			206,500	-1,317,273
7 TD Sec	355,545	2,274,441	6.397	162,673	1,037,539	6.378	192,872	-1,236,902
200 Acumen	100,000	619,779	6.198	0			100,000	-619,779
79 CIBC	337,394	2,151,075	6.376	252,139	1,603,817	6.361	85,255	-547,258
89 Raymond James	76,000	494,050	6.501	538	3,491	6.489	75,462	-490,559
14 ITG	38,834	247,982	6.386	681	4,354	6.394	38,153	-243,628
9 BMO Nesbitt	156,925	996,001	6.347	121,144	781,611	6.452	35,781	-214,390
85 Scotia	53,892	342,468	6.355	31,461	199,517	6.342	22,431	-142,951
2 RBC	47,404	299,552	6.319	33,891	216,671	6.393	13,513	-82,881
5 Penson	56,706	359,471	6.339	45,196	287,778	6.367	11,510	-71,693
88 Credential	18,596	118,529	6.374	8,344	53,392	6.399	10,252	-65,137
65 Goldman	8,300	52,360	6.308	2,700	17,263	6.394	5,600	-35,097
72 Credit Suisse	5,200	32,983	6.343	0			5,200	-32,983
80 National Bank	22,910	146,752	6.406	18,205	116,653	6.408	4,705	-30,099
68 Leede	3,000	19,260	6.42	0			3,000	-19,260
33 Canaccord	2,000	12,395	6.198	0			2,000	-12,395
59 PI	1,000	6,410	6.41	0			1,000	-6,410
57 Interactive	500	3,192	6.384	0			500	-3,192
124 Questrade	14,657	93,826	6.401	15,250	96,839	6.35	-593	3,013
76 Industrial Alliance	0			709	4,587	6.47	-709	4,587
25 Odlum	0			1,000	6,400	6.40	-1,000	6,400
53 Morgan Stanley	16,410	105,735	6.443	19,207	121,753	6.339	-2,797	16,018
83 Mackie	0			7,000	45,430	6.49	-7,000	45,430
62 Haywood	0			11,035	70,025	6.346	-11,035	70,025
19 Desjardins	4,537	28,329	6.244	19,265	120,082	6.233	-14,728	91,753
39 Merrill Lynch	36,460	234,269	6.425	77,091	481,749	6.249	-40,631	247,480
77 Peters	0			246,100	1,565,516	6.361	-246,100	1,565,516
1 Anonymous	577,032	3,686,758	6.389	1,066,173	6,808,423	6.386	-489,141	3,121,665
TOTAL	2,139,802	13,642,890	6.376	2,139,802	13,642,890	6.376	0	0