RNC Gold Inc fka RNC

[amarksp]

Short & Distort - Jitney Trading
*Ping-Ponging = Jitney (recall that I called TD Sec and Canaccord trades as ping-ponging, seems the proper term is Jitney. This is where we see large blocks of RNC shares being traded between Canaccord and TD Sec, or simple crosses within Canaccord or within TD Sec.
*My speculation is that TD Sec and Canaccord are the primary jitney houses/traders... We may also have Jones Gable participating with those CSH trades purchased from retail investors who panic at prices $.06 to $.10 above the last market price (CSH trades occured on 5/5, 5/4, and 4/1).
*The article below, slightly edited, primarily describes how jitney works on the upside pump and dump. It works just as well in reverse for what is termed "Short & Distort".
*For article below, use this definition for Insider, Insider = Investor with advanced knowledge of Canaccord PP and especially those investors who knew RNC was going to be re-priced lower from C$1.20 to C$1.00. I believe these investors, likely Canaccord clients/customers who participated in the PP, have shorted their RNC shares and kept their 1/2 warrants to hedge against the trade going against them. In 4 months, their RNC shares become non-restricted and they can use these shares to cover, in the meantime they have protection via the 1/2 warrants.
__________________________________
edited article found on the internet:

Do you ever wonder about these small cap stocks that post a tiny bit of volume and then just climb and climb? One minute the stock is trading for C$1.33 and with very little volume runs to C$2.50. Amazing? Not at all. It is the jitney game at work. This practice is SO pervasive in the small cap market that I thought you should know about it. Otherwise, you’ll get trapped in the jitney game and lose a bundle. There are many depths to it and variations on it.

Jitney is the game brokers and traders play among each other, especially in the western Canadian stock exchanges. But it is not limited to just Vancouver and Alberta. It is used throughout the entire small cap stock market. My first contact with this word was when I overheard a broker saying, “We can jitney that stock over to a few other brokers I know, at other houses, and that way no one will know who sold it.”

That is how the brokerage community and insiders often work. Hand in hand. There are even some brokerage firms, start-ups, which are known as “jitney houses.” Their principals and brokers are quite eager to run business through their houses and rack up commissions on buying and selling of stock. There are even certain brokers who fool their own houses and rack up enormous commissions by running their stock purchases and disposals, around in circles, via a series of offshore trading accounts, which they own. An enormous amount of volume can be created in this way, without anyone really understanding what is going on.
Far more brokers are involved in the jitneying process than you can imagine. It is quietly and secretly done amongst themselves. It is frequently done every day. One of the deceptions is that it creates an appearance that there is activity in the stock. Whenever you see a stock that has been trading very low volume, it means that no one is really buying and selling stock in this company, but that someone is trying to make it look like activity is afoot. It is only an illusion.

That illusion is created simply to suck you in. Just like hype and promotion, which create a whirlwind of trading volume and a price rise, is designed to suck you into the stock, the jitney game weaves its magic on a less dramatic and surreptitious level. The results are the same when the stock is going up. Please realize there is a difference between a stock that insiders buy and sell, on a small scale, as opposed to a stock that is being jitneyed about, from house to house, with gap-ups or down.

The gap-up, during the jitney process, can usually be accomplished with 20,000 to 50,000 shares traded every day. The unscrupulous insider just places buy orders, on an inactive or low volume stock, through various houses, paying more and more for his own stock with each new buy order. Very few, if any, sell orders come into the market. Now, this has to be done with the tacit cooperation of the professional traders or they would fight his buy orders and stamp out any potential upward movement.

As soon as the stock makes its “run” to a higher level, and real investors come into the market, what do you think the insider does? He sells what he just bought. If it is done very well, the insider will issue a news release, pumping up the stock to an even higher level. Then, he unloads his entire recent purchase into the strength of the trading volume. If he is very, very good, he jitneys his stock way up, does a massive promo push, and then dumps a huge load of his paper into the market. Watch the jitney game in operation sometime. Look back over some of the stocks you’ve bought—the ones that popped up a bit, just before a promo push. Darn if it wasn’t the jitney game being played by a master.
______________________
You may want to review a search of the term Jitney on the TSX website, it sure brings up a lot of hits.

http://search.tsx.com/query.html?style=TsxEnglish&la=en&col=tsxen&qt=jitney

Also, most of the Brokerages/market makers list Jitney as a Service, use this link below and click on TD Sec or Canaccord name and TSX will list the brokerage service which includes Jitney Service.
http://www.tse.com/HttpController?GetPage=QuotesViewPage&DetailedView=DetailedPrices&Languag...

Appears to me that all of the large, likely Jitney trades are coming from brokearages that offer Jitney service, and very few that do not offer Jitney service.