Tinka Resources price crash caused by newsletter writer sell note


Tinka Resources {TSX.V: TK}
has been the subject of a sharp fall in share price, despite having no negative news recently.

The source of that fall has now been identified as an American newsletter writer issuing a “sell” note after the price had fallen 20%, causing another fall. The stock is now recovering.

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Tinka Resources {TSX.V: TK} has been the subject of a sharp fall in share price, despite having no negative news recently. Tinka started the year at 75c, and had fallen steadily throughout 2018, but then on Friday there was a large drop on high volume.

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The source of that fall has now been identified as an American newsletter writer issuing a “sell” note after the price had fallen 20%, causing another fall. As his subscribers sold out, with over 1.1 million shares traded last Friday.

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The newsletter writer concerned, one Matt Badiali, has a strict 20% stop loss rule, which makes him vulnerable to a short attack, as has been suggested by one source in this case. If a group of shorters can drive the price down 20%, they know he will issue his “sell” advice, and then the shorts can buy and cover, and make another gain on the way back up.

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I guess some of his subscribers may be a bit miffed at the moment!

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I spoke to CEO Graham Carmen on Saturday and he confirmed there was a “big seller out of the USA”, without mentioning the newsletter writer at all. The “seller” was in fact a whole group of people.

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