CS. Naked Short Selling or just market manipulations?
We have almost missed this one - we were busy on Friday. When we checked our screen with TNR Gold trading below 0.16CAD at one point, we thought it is a Flash Crash in the markets again.
But markets were...fine, DOW was strongly Up, US Dollar down and Gold was holding at new high. Situation became even more interesting when we have checked the tape:
Recent Trades - Last 10 of 182
Time ET Ex Price Change Volume Buyer Seller Markers
15:59:01 V 0.16 -0.005 500 9 BMO Nesbitt 85 Scotia K
15:56:37 V 0.16 -0.005 500 9 BMO Nesbitt 85 Scotia K
15:54:13 V 0.16 -0.005 500 9 BMO Nesbitt 85 Scotia K
15:51:43 V 0.16 -0.005 500 9 BMO Nesbitt 85 Scotia K
15:49:19 V 0.16 -0.005 500 85 Scotia 85 Scotia K
15:47:02 V 0.165 0.00 6,000 7 TD Sec 9 BMO Nesbitt K
15:46:55 V 0.16 -0.005 500 85 Scotia 85 Scotia K
15:44:25 V 0.16 -0.005 500 85 Scotia 85 Scotia K
15:41:49 V 0.16 -0.005 500 85 Scotia 85 Scotia K
15:39:13 V 0.16 -0.005 500 85 Scotia 85 Scotia K
Who would be hitting every 180 second every bid just to drive share price lower? If you are selling your position you would, normally, wish the highest price? What kind of hedge fund will be engaged in algorithmic trade with daily volume below 100k CAD?
We have seen this before with other companies, so we have checked all vital signs first: lights were on in the office and phone line manned, Gary Schellenberg was not on the list of passengers destined to Panama - secretary politely informed that he is attending the business meeting and IR have sent us a message:
"Thank you for your interest in TNR Gold and International Lithium.
We are aiming to complete the IPO financing for ILC as that is the only
factor delaying the process at this point - TSX, BC Courts, and our
shareholders have all approved of the spinoff.
In regards to any sales, management and insider hold nearly 50% of
outstanding equity and all sales are reported via SEDI and CanadianInsiders.
As far as we can see management and our major shareholders have only been
acquiring more shares with the lower share price of late.
If you have any more questions please feel free to get hold of us.
VP Corporate Development
TNR Gold Corp. (TNR.V)"
Today we have found Retire Fund with its new blog entry:
TNR Gold Corp, Gold, Lithium and Rare Earth Metals, all in one package!!
and Kirill Klip seems to be fine on his Linked In page and even has posted new Presentation for International Lithium over there.
We hope that this mystery will be resolved on Monday and we will see, whether "Rise of the Machines" against TNR Gold will happen again. For every seller there is the buyer, now it is getting crowded at the bid side and we will monitor insiders' reports to find out who was buying.
After all what happened with Minera Andes last week someone would think that TNR Gold should be on the rise as well, but it was not the case.
Then again, maybe it is the message of some kind to the company. We can see some logic to drive the share price lower in a case of some kind of a bid for the company or parts of its operations, but we are in Canada - who would play such dirty games? And message from the IR told us that insiders own nearly 50% of the company - we guess they will not go cheap this time. We do not believe that it is the case here.
So we will search for the news about hedge funds specialising in cybertrading in junior miners with market cap below 20 mil - they must be making a killing in a sleepy Vancouver or maybe it is Big Oil taking on the company with its lithium dreams? We have more questions than answers for sure now.
In any case be careful here, do your own DD, do not let you to be shaken from the tree and do not mess with the big boys, let them settle things straight between them, but make sure it is not at your expense.
We will monitor the situation: time will tell us whether it is a Christmas sale came early this year or we will have some other cybertraders in the markets with a special mission to punish junior miners.
We have a position in these companies, please, do not consider anything as an investment advise, as usual, on this blog.