Management abducted by aliens perhaps?
No, that would make the stock price go up.
The reasons for that horrible sucking sound that is money fleeing the Canadian venture scene are the same reasons causing the same sound in markets around the world.
The American markets, fuelled by fractional banking-expanded supplies of fabricated-from-thin-air money as the Fed kites cheques to the Treasury who borrows from the Fed, is thus an imaginary behemoth with real world repercussions.
As U.S. markets and stocks go up, capital flees its own countries to chase the highs, even as the counterfeited currency-fuelled stock prices create an unsustainable bubble of inflated by such fabricated demand.
Meanwhile, national markets in places like Canada stand numbly by as markets deteriorate and become bloodless mummies of their former selves.
It doesn’t help that the S&P TSX Venture Index is weighted such that the most reviled sector – mining – constitutes 51% of the companies composing the index, despite the fact that they’re entire combined market cap, as a percentage of the TSX Venture Exchange, is only 33%.
Thus, as the high volume traders are regularly half-penny zombie mining companies in the process of going supernova, the index is dragged down, and the other sectors with it. Its a recipe for destruction that compounds the downward momentum of mining exploration and causes it to infect healthy sectors.
And mining companies themselves will continue to fall off the board like dogs shedding hair with the changing seasons.
Those who have no alternative to mining – and who refuse to become medical marijuana companies on principle – are relegated to working less, and waiting.
