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Aurcana Corporation Message Board

  • surfrod9 surfrod9 Jun 19, 2012 6:35 AM Flag

    An answer ? to Fri-Mon swings-Aurcana

    Hedgers bot AUNFF & sold AUN.V on early Friday- then by late day, reversed said hedges..sold AUNFF & bot AUN.V....

    Monday, they cleaned up..AUN.V popped from .90 cls to 1.06 cls...AUNFF opened Mon way down, slipped under 1.00, closed meagerly @ 1.03. Done deal?

    Monday vol's for both shows Friday's high vol's haven't been matched by an opposite amt. Monday. The hedges might STILL be on..shrt AUNFF & long AUN.V, as of Tuesday's open.

    Somewhere (if didn't Mon), they will unravel this 'windfall profits' hedge they created..will buy AUNFF on large volume & do opposite on AUN.V

    Simply buying AUNFF Tuesday could ruin their day (hedgers), and the massive profits they would've made on such an unusual manipulation. I don't expect that, ofcourse. They've been playing this stock ever since 2009..if not cross border hedges, but shorting after every buying spike, separately.

    The stock options for employees might have provided SOME of the opportunity, as usually they sell them right away (details weren't provided). They see them as bonus's, they are workers, not investors. Nothing wrong with being a hard working employee, and wanting their pay NOW, not taking chances later.

    All of this is my final 'guess' as to why or what happened Friday to Monday (or whenever), and I could be wrong about some, or all of it. Just seems very plausible..and only talking abt Aurcana's particular case.

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    • There is no opportunity for an arbitrage deal here. Any trade entered with the symbol AUNFF is simply routed to the Canadian market. The volume on AUNFF is always significantly less then the volume for AUN.V. Last Friday when AUN.V dropped 26% at the close there were no trades for AUNFF in the last two minutes. All you were seeing on AUNFF was the price of the last executed trade PRIOR to the huge drop. Had there actually been a trade for AUNFF it would have gone off at the same price as AUN.V since they are the SAME market.

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