http://www.stockhouse.com/bullboards/messagedetailthread.aspx?p=32133656&m=32142410&r=0&s=GCU&t=LIST

 

Thanks for the link.

I read his article - and viewed the video. I think he's right but I also think he's overly optimistic if he thinks someone is going to come up with a valuation process for exploration companies that holds weight with the market and one that the algo's pay attention to.

HFT's are parasites searching for liquidity - when they find it, they attach themselves to the host and live off the liquidity, moving to the the next host when liquidity disappears or various algo modeling goals are no longer met. If you can't remove them and their ability to short down ticks you cannot solve the problem in the junior markets.

Juniors have short bursts of liquidity on news - the parasites attack - then disappear as quickly as they arrived. This is great for the Exchange as they make up about 44% of all the trades - but it is of no lasting benefit to the companies or the investors.

For large companies with consistent liquidity it definitely can be argued that they smooth out trading and keep markets liquid - but it's not the case for micro-caps.

The system is severely dysfunctional and the TSXV is not a place for "investing" anymore. It was always a high risk game - but the risk now is not just from sleazy promoters but from systemic problems that can only be solved by the exchange - and as HFT's make up 44% of the trades now, the Exchange has no interest in changing the game. Short sightedness will cost them in the long run.

In the meantime - don't invest - it's a trading market only. Looks great @.60 - but it can go to .30 as easily as it can go to 1.20...