I think Trojan is now worth taking a look at. It's been pretty tortured to the downside certainly over the past two months, and then again in the past two days. They just came out with their quarterly, which was really no surprise to anyone. Need to restructure, plan in place, etc. Not a pretty quarter.
I decided to take a closer look at the trades. Commission Direct has been a massive seller throughout November, selling 407,700 shares in the open market, buying none. Though they've been selling all month, what is interesting is their selling pattern over the last 3 days.
Monday: Sold 134,700
Tueday: Sold 52,300
Today: Sold 27,900
It looks as if Commission Direct may be running out of shares.
I also took a look at the next biggest seller which was Yorkton, with a total of 92,000 shares on the month. They sold no where near the volume that CD did, and furthermore, the sales were made much earlier in the month, with the last sale being on Nov 17th. None since then. The next biggest seller is Scotia, but that's only a total of 22k for the entire month so they're not even worth looking at.
So to my eyes, the price is being forced down only by the Commission direct selling with no one else putting on the downside pressure. If they are in fact running out of shares as looks to be the case given their diminishing selling over the last 3 days, there may be a bounce up in store.
On top of this closer look at CD, I also think this reaction to the news is a little overdone. But then again, the market just wouldn't be any fun if it didn't over-react to the up or down side! <gg>
Best regards,
Kevin |
