Morguard Corp MRCBF

123,000 share block traded by RBC at 1:31pm today.

[mariorizzi]

It was a massive block trade, categorized as a by-pass trade. 

This was conducted on the NEO exchange. 

My understanding is that this was a large block being distributed by one entity to its clients. The price was $130. In order to sell the shares to its clients at this price, the seller legally would have had to knock down all the orders to this price. This is what they did, certainly today, as they sunk the stock by over $8. 

Basically, this was all manipulation so that this institution could transfer the funds to their clients at $130 per share, rather than at a higher price. They slowly bled the stock down to $130, then executed the trade, and now it all floats back up.

It should be illegal, and it mostly is. It is hard to see if these guys did it legally or not. Certainly anybody who sold at a low price should be upset.

[mariorizzi]

It is hard to say if the selling is over, however, considering the considerable effort that this seller has used to lower the price to $130 in order to execute their trade, it seems to me unlikely that they would continue selling afterwards too, unless they have another block to distribute to their clients, which also seems unlikely, because they would have done it all at $130, if they did. And it

[mariorizzi]

For those interested: A trade of securities involving buy and sell orders for the same securities which are offset without recording the trade on the exchange. Pre-arranged cross trades are generally not permitted by most exchanges except in specific circumstances. For example, section 633(5) of the TSX Company Manual provides that a participating organization

[templetooth2]

Glad I was awake at the switch. Snagged some at $131.70.  Seems like most real estate stocks are back at 2019 levels or close to it. Maybe this one with heavy Alberta exposure will wait awhile, but the Alberta connection doesn't seem to have hurt Melcor, for instance.