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Volta Resources Inc T.VTR

Sector: Metals & Mining | Sub-Sector: Gold
Alternate Symbol(s):  VLTAF

Price: N/A | Change: N/A | %Change: N/A
Volume: 0 | Day High/Low: N/A/N/A | 52 Week High/Low: 0.57/0.11
T.VTR Volta Resources Inc
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ALLEN4 - (1/19/2013 6:45:08 PM)
fund management

I took a day off but noticed most of the comments from friday were about the activities about fund managers; and we see this complaint a lot, that a company such as Sprott wil have a target price on Volta well beyond today's price but then be seen on Level 2 to be agressively selling the stock.

While it never pays to underestimate the kinds of deceptions people in this industry will get up to to make a dollar, I think there may be another explanation.  And that is simply - redemptions.  The local grocery store manager has four mutual funds, one of them is a gold fund with Sprott, which he purchased a few years ago because gold was going up.  He checks his gold stock mutual fund, sees that is down 30 per cent and cashes it in because its not making him any money.  He knows nothing about Volta or indeed any of the companies in the fund.  Sprott has to give him his cash, and their computers go into an automatic sell, in some predetermined proportion to the holdings in the fund, and Volta gets dumped mechanically.   I think that is a more reasonable explanation than the suggestion in some of the postings on this board - that Eric Sprott has some inside information or expertise that leads him to believe that Volta is going to be a failure and is therefore actively selling the stock while overtly promoting it to the public.   By the way, I keep mentioning this and it keeps coming up - Comark is not Sprott;  Comark separated from Sprott several years ago and operates completely independently of Sprott's businesses.

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