ECU: Breakdown of trading since 6/24 merger announcement

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Silverbull50

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ECU: Breakdown of trading since 6/24 merger announcement

posted on Aug 29, 2011 08:19AM

House Positions for C:ECU from 20110624 to 20110829

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
59 PI	2,256,000	1,423,745	0.631	1,600	1,258	0.786	2,254,400	-1,422,487
2 RBC	3,014,053	2,619,342	0.869	1,760,770	1,439,286	0.817	1,253,283	-1,180,056
72 Credit Suisse	1,137,916	1,032,702	0.908	10,500	7,275	0.693	1,127,416	-1,025,427
39 Merrill Lynch	1,047,115	753,419	0.72	336,535	295,288	0.877	710,580	-458,131
46 Macquarie	719,500	457,610	0.636	24,390	22,798	0.935	695,110	-434,812
13 Instinet	386,294	243,751	0.631	0		386,294	-243,751
99 Jitney	3,952,700	3,063,018	0.775	3,611,700	2,647,703	0.733	341,000	-415,315
53 Morgan Stanley	320,200	275,794	0.861	27,129	16,548	0.61	293,071	-259,246
1 Anonymous	4,418,900	3,525,017	0.798	4,261,200	3,361,612	0.789	157,700	-163,405

(middle firm activity--insignificant)

80 National Bank	1,029,563	737,018	0.716	1,104,030	812,033	0.736	-74,467	75,015
86 Pictet	0		138,600	124,987	0.902	-138,600	124,987
62 Haywood	0		175,500	157,450	0.897	-175,500	157,450
15 UBS	376,584	259,887	0.69	641,899	475,169	0.74	-265,315	215,282
65 Goldman	455,393	337,974	0.742	776,866	669,151	0.861	-321,473	331,177
33 Canaccord	813,630	687,135	0.845	1,212,911	1,007,755	0.831	-399,281	320,620
7 TD Sec	2,605,575	1,953,075	0.75	3,185,676	2,538,709	0.797	-580,101	585,634
85 Scotia	803,956	588,686	0.732	1,534,112	1,252,956	0.817	-730,156	664,270
9 BMO Nesbitt	643,800	477,579	0.742	1,423,200	1,157,946	0.814	-779,400	680,367
79 CIBC	1,865,821	1,393,748	0.747	6,123,793	4,248,904	0.694	-4,257,972	2,855,156
TOTAL	28,722,167	22,063,949	0.768	28,722,167	22,063,949	0.768	0	0

The net long/buy positions are posted at the top, the net sell/short positions at bottom.

Conclusions:

1. PI, RBC, and Credit Suisse are most likely short covering positions.

2. Merrill L. and Macquarie are most likely long additions by major ECU shareholders.

3. Jitney(99) lost $152M with near-equal, large buy/sell positions and was primarily utilized to constantly suppress ECU and protect major short position, despite trading losses.

4. TD(7) was most likely utilized by an in-house trader and consistently made a daily profit trading the stock.

5. National Bank(80) was also utilzed by an in-house desk trader who profitted.

6. Judging by the buy/sell prices of Canaccord(33), the stock was probably traded early after the merger announcement but disbanded later. Scotia and BMO also traded the positions successfully/profitably, and appears to be fair game by in-house traders.

7. CIBC(79), by far the major suppressor and manipulator of ECU during this sharp 2 month takedown. Sales at CIBC represented 21% of all shares sold, show a net sale position of 4.25 million shares, and a net loss of 5.3 cents on every share purchased (1.865 million)!

Perhaps most indicative of CIBC was the constant supply of sells/offerings/shorts anytime the stock attempted to gain upward momentum. Aligned with Jitney, whomever was trading thru CIBC clearly wanted to either unravel the merger or desperately protect a much larger short position.

How does this all end? We will soon find out as this week plays out and the merger is consummated.