In an earlier post today, I said we saw no accumulation of SLI stock for months. I looked at this the conventional way for accumulation. It wasn,t til I had a PM from Trader Bob, talking about accumulation, that I discovered I may have been missing the accumulation. So now, I looked at it unconventionally and see that there could have been inconspicuous accumulation.
The way accumulation could have been done under the radar (disguised) is;
Brokers have access to many houses by which to trade under, for instance, RBC, Scotia, Anon, etc. They can reroute trades also through various houses. So, for instance, say that Scotia was the main seller today by retail and that an entity that day decided to accumulate under RBC. The next day CIBC was the seller and the entity accumulated the same amount(or close) under the house Scotia. What the common investor would see would be a wash in the Scotia house position and no accumulation would be observed. BUT, IN FACT, there was a disguised accumulation by the same broker for 2 days, and nobody was the wiser.
We observed shares being pryed loose and ATS,s on our stock, along with other mechanisms that I have never seen before. We have seen immense pressure put on our stock since Oct with news that could have come at anytime. We saw the short position rise while management is in blackout and could have put news out at any minute, yet this was paid no attention to by the little short position. If someone wanted to accumulate for theirselves, why not just buy under any house and get the shares, no need to be inconspicuous? BUT, if you were trying to accumulate shares inconspicuously, why?
A major could run the SP down , accumulate to sway the vote(in our instance they would most likely not be able to accumulate enough yet to sway the vote, but would have some cheap shares to make a lot of money off of later), and launch an offer. The Arequipa offer comes to mind when that was driven down 50% from their top, then bang, an offer. Kherson also mentioned the recent actions in the Daylight takeover, I guess he may have been saying that our stock is trading similar?
For us to be waiting for news that could be excellent and partially prove that this is a huge deposit, the sp going down like this makes little sense to me. Although most investors may not be happy with Lori, we didn,t buy into this stock because of management, if there is something wrong with management, thats got nothing to do with the deposit.
I am not implying that a buyout is coming or any other fantastic scenario, I am just showing what could be possible.
