Gold Canyon Resources Inc V.GCU

Let's put this into Perspective

[godisgr81]

Around $20,000 worth of selling brought this down nearly 40%. There is no volume with the sell off which is a good news. Likely some guy just wanted to sell at market price just over 100,000 shares.

If there was strong volume with this sell off then I'd be concerned. 
I plan to load up if this stay at this price but likely will return to yesterday's 52wk lows. You will see a pop of .4 - .6 cents from today's lows tomorrow morning.

There are no upcoming catalyst this year which is a bummer and they have around $1.8 milllion cash with very low burn rate. I see a PP in the next four to six months.

Good luck to all the Longs.

[orepass]

Nothing to worry about... Friday was a rebalancing day for some gold ETFs... Citi started to sell but clearly couldn't balance the books by the close friday... Citit sold all day today and flushed the balance at the end of the day... This will bounce back to $0.20 tomorrow... Period... I wish I gad a stink bid! orepass

[lotsofluck]

I was watching it near the close the bid was 12.5 cents but the ask was still 19 cents so it was a hell of a spread. Could not buy at the 12 cent mark anyway.

[goldguy007]

Well, orepass, you forecast that right on. SP opened at 0.20 with no chance to buy it on the cheap. goldguy

[orepass]

Since Citi was still selling yesterday, but no longer today, it now looks like what happend is that their (Citi) algo went bezerk near the close on monday... Stock will recover to near $0.30 barring a selloff in gold (bullion)... Went back long at $0.21 this morning... Another great story is PGM-V... orepass

[Schill]

These are brokers, too. You don't know if they are trading on behalf of a customer or on their own. Personally I don't think they are - GCU is way too small. I don't think this was a (professional) algo going berserk, volume not worth to mention: To me it seems much like a market order placed into illiquid bids. More like a small retail investor who lost nerves and wanted to get out

[Schill]

Hm, the image didn't show up. Next try: Image:

[orepass]

I disagree. You can see the US brokers' algos in this stock quite often... Probably to balance positions in gold funds or ETF... I sold at $0.40 when Merrill was buying it up at any price at the end of July... These situations are so obvious you have to take advantage of them! orepass

[Schill]

How do you see it?

[orepass]

Citi sell 500 on the bid every 2-5 seconds... And reacts with more size when someone else hits the bid (i.e anon 15:29:29)... Trades for C:GCU on 20140919 - 200 trades displayed Time ET Ex Price Change Volume Buyer Seller Markers 16:00:00 V 0.205 -0.035 4,500

[Schill]

Very good observation. I agree, that's an algo. But the dip down two days ago, doesn't show these characteristics, does it? Does Citi maybe offer a software with a programming interface like Interactive Brokers does?

[orepass]

The other interesting observation is that over the past 18 months, everytime the stock has trended up or down significantly (from $0.20 to $0.40 and vice versa) it was driven by US side brokers... Sure the movements were also coincident with the trend in the price of gold but clearly the interest is tied to someone in the US and when they move it, they use algos and it lasys a few days... orepass

[diabase1]

Orepass: you've made some interesting points. With all due respect, how do you know it's US traders doing this? Why couldn't Canadians use algos to move the stock?

[orepass]

I just suspect that some US gold player uses this stock as a proxy to play the gold price swings... Or it could be a US gold fund/ETF... Rarely you see Citi and Merrill play penny stocks that way on CDNX... Has to be liquid... orepass

[diabase1]

'Has to be liquid". To take a stock from 0.20 to 0.125 in a matter of seconds, should be a case for the TMX/SEC to investigate!! That said, I appreciate your observations on the trading. Thanks.

[Schill]

Why? That's the nature of iliquid small equities. If I would sell my position at market, it would maybe go under 10 ct. :P Should I be prosecuted then? Shouldn't everyone have the freedom to sell how he wants? Because never forget: for every seller there's a buyer. But you seem to be one who hates low prices. I LOVE low prices of stocks I like. They allow me to buy cheaper with lower

[Curvature]

This post has been removed in accordance with Community Policy

[diabase1]

Curvature: you too are absolutely right!! However, my point was the 'spread', and a trade between 0.20 and 0.125 in a split second!!!! Could you not equate this to a 'boiler room' tactic in years gone past? I thought we were getting rid of these types of transactions!! Schill, with all due respect, the TSX-V still doesn't have it ( a clue), but you have made some very valid

[Schill]

Following this argumentation buying physical gold is ar the same risk as buying a house and buying a car and buying stocks and buying treasuries: if the gold is stolen, the risk is 100%. If a fire or earthquake happens, the loss is 100%. Buying a car and driving on a road: risk 100%. Even the whole life is all the time at a risk of 100% loss. I do not view it that way. I think the lower the price

[Curvature]

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[Schill]

Why are you so frustrated?

[diabase1]

Schill: you are right!! This is the nature of really illiquid stocks, and really illiquid Board of Directors, just like Gold Canyon BOD. I understand everything you're saying Schill!! Was it you who bought at 0.125??

[Schill]

No. My bids got filled @.19 & .20.

[lotsofluck]

The bids never hit .125 they were at 19 cents the day of the drop and opened at .20 the next day.  i tried to buy at .125. it never went down there.  Not even for a second

[Curvature]

This post has been removed in accordance with Community Policy

[orepass]

When they move it...It becomes liquid... Monday the algo glitched imo... orepass