Is trading so strangely these days - News, massive volume spikes, consistently high daily volumes, changes in the gold price - but the price just stays fixed at this level. It's almost as if the fix is in - the price as been set for some transaction. I hope I am wrong.
Yeah - I wonder who sold and bought the other 21 million shares today? Crazy. Perhaps other funds that aim to track GDXJ?
What I meant is there is no a very real arbitrage situation between RBY and RMX, and I expect that to be cleared up immediately upon trading on Monday. Therefore, either RMX moves down 10 percent or so or RBY move up.
Given the current exchange rate, RBY should be 1.01 based on RMX closing price - so, again I ask, what happens monday? My guess, is RMX quickly moves down in line with RBY. Essentially, Thursday and Friday never happened, and RBY will begin trading next week exactly where it closed on Wed. night. Odd, but it is what it is.
15 days was the number of shares to be sold (17.2 million) divided by the average number of shares traded in a day (1.1 million). It does not mean that re-balancing would take 15 days.
He mentioned that GDXJ would be selling approximately 17 M shares in the index re-balancing. So, afterhours a trade of 17.7 M shares traded at the low of the day.
12.34% differential between RBY and RMX - so, on Monday, does RBY move up or does RMX move down. Brutal day. Down 17.4 percent on over 20 million. Are investors supposed to know about index re-balancing? Should the company make a statement?
also, if 4.5 million shares being sold by index (assuming all shares sold were by index which is obviously not true) drove it down 17 percent, can we expect prices in the .60s before this liquidation is over? Happy I cancelled my buy at .88. Looks like much lower prices are coming. Hard to believe. Just when it looked like RBY was going to have some momentum to the upside, whack!
to mitigate the impact of the re-balancing that was starting today? Either way, lucky we had yesterday's 'news' (luck or design). Otherwise RBY would be trading in the low .70s
Good find Sewells - that would explain the heavy volume and downward pressure. If it is the case that this has nothing to do fundamentally with the Company, then, yes, it is a good day to buy.
Sewells - the fact of the matter is that RBY has now retraced the entire up move yesterday - that is strange. Perhaps the move yesterday was driven largely by shorts covering, then with the relatively neg report by Scotia today and the realization that the news yesterday was not that material, the shorts felt emboldened to sell it back down. I was expecting a retrace today to some degree, but I didn't think they would sell it all the way back down to the gap at .88.
I agree - something is not adding up. RBY's given up almost all of yesterday's gains and on very high volume. I can't imagine what the bad news is though. Perhaps drill results, but unlikely. Was the move up yesterday just so big money could exit before the news breaks? We will obviously have to wait to see, but I am going to cancel my buy at .88 and see what comes of this. I wish I had sold more yesterday, oh well.
"This is the same leadership group that took a 215 million dollar 1250 tpd project and optimized it by making it a 385 million dollar 1250 tpd project" - sums it up beautifully
Scotia mentioned this sewells, but they also thought RBY would have to increase pace by 20% to meet schedule even given the eliminated work from the development plan.
Behind schedule and over budget. Partially responsible for today's very high volume sell off? Mgmt continues to demonstrate that they are over their heads with this project. Oh well. Cheaper prices on their way. Gold could drop going into the end of the year as well further driving share price downwards.
One definition of insanity is performing the same act over and over and expecting a different outcome. EVERY time RBY moves up significantly, all the loons scream BUYOUT. RBY is not getting bought out. It moves up faster than its index (just likes it moves lower faster) because it's a high beta stock. RBY is going to production, and as long as gold doesn't drop precipitously from here, RBY should move higher albeit certainly not in a straight line. My gut tells me though RBY closes the gap at .88 before moving much higher from here.
The last two days have seen volume over 3 million (including TSX) , but the price hasn't budged up or down. Can anyone speculate on the meaning, if any, of this type of action?