It’s a thing on the junior markets that, sometimes, you’re not the master of your own destiny.
On the big boards, if folks want to buy Air Canada or BMO or Bombardier (ha!) in big numbers (haa!), the relevant stock will likely move up because there’s plenty of action on the regular and one buyer or seller doesn’t have as much influence as the collective.
But on the junior markets, sometimes one guy will hold shit down and there’s nothing all you little jokers with your thousand dollars here and there can do about it.
Take, as an example, Leonovus (LTV.V) today.
Notice anything a little bit off about today?
Yep, someone had a big (or several big) sell orders at $0.395, and every time interested buyers waded in for some Leo Love, that sell order filled it, right the way to the end of the day. It’s likely there’s still more to be sold.
But there is no cause for alarm. This too shall pass. First, it’s clear there were many buyers all day long. Second, what caused this is likely someone who got in nice and early, or maybe had a chunk of the shell it rolled into (remember, this stock was sitting at $0.05 as recently as August), and is cashing out their seven-bagger.
So be it. Everyone else buying the stock would appear to think there’s a lot more profit to be had, even when buying at these levels, so once this guy is done churning, the company will be free to float upward once more.
It also means, you still have a chance to buy the stock under $0.40. Two days ago, you were lucky to grab it under $0.30. Three days ago, you could have got $0.25.
Blockchain companies are zooming right now, though today saw a bit of a sell-off for many after the big jumps seen on Monday.
Leonovus, which helps companies use blockchain tech to streamline data storage, announced a deal with a Big 6 Canadian bank that day and jumped by a third. They followed that up today by announcing a webinar about how their storage tech works, which will undoubtedly be well attended.
One imagines there’ll be more news to follow.
— Chris Parry
FULL DISCLOSURE: Leonovus is an Equity.Guru marketing client.