Hi Cedar!
If I wanted to build a significant ownership position in KXL, I would be in contact with the company to offer a bought deal. That way I can get the shares I want and pay one price without screwing around in the market. People like you and I that just want some shares in our PF can bid stock and flip it all we want without moving the market very much. But if you want a million shares, no way.
The 4 month hold is not going to discourage an institution because that kind of player would only put money in if they had already made the decision to give KXL a year or more to perform.
I would have to believe that some mid-scale buyers were active in the market before this deal, maybe buying as much as a hundred thousand shares in a day to build a position. That kind of buyer would now be diverted to participate in the bought deal. For the rest of the market, there is no reason why KXL should fade down to the lower end of the range except that people expect it to. It is a self-fulfilling prophecy, IMO. The hyper traders that account for so much of the daily performance of this stock believe it will be stuck below $4 for a while, so that is where they are bidding, and the stock drifts down to that range.
I am thinking about adding a few shares myself if it dips much lower, just to top up a trading position that I will flip after KXL runs back above $4.
cheers!
mike