Royale Energy: Textbook Illegal Trading? 15 comments
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I have authored a couple of articles regarding suspect trading activity on Royale Energy (ROYL). While the energy sector has been impacted today, does anyone really believe this price collapse isn't primarily driven by market movers driving down the stock price?
A stock which traded in the upper 14s after posting a Q1 loss with increased cash flow, has now dropped to the upper $5s. It's fairly clear that the share price of small cap stocks can be manipulated at the will of market movers. I know that ROYL will rebound; however, many individuals have lost their life savings on this stock. There does not appear to be anything that can be done to prevent it. Numerous complaints to the SEC by many people have gone unanswered. Requests to Senators and Congressmen go unaswered.
It's unlikely that Royale Energy management could do anything; however, they have also not responded to numerous stockholder requests. They do have a business to run; however, they have owners (stockholders) that are being impacted. In fact, insiders within ROYL hold a very substantial position. At what point shoud a company's management publicly protest this type of trading?
Disclosure: Author holds a long position in ROYL
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On the other hand, you don't do your stand or argument a service by exaggeration: "many individuals have lost their life savings on this stock." Sheesh, man, this stock was near $2 just a few months ago. How would someone have "lost their life savings" that fast?? If they bought even earlier this year, they made a major profit on the rocket up and should have taken some profits. And then again, perhaps upper $14 wasn't warranted quite yet by a company with a Q1 loss? Your argument falls apart a little there.
Just a comment...though as I said, I agree with the fact that the market has become a den of thieves and no longer really meant for "mom and pop." They should be putting their money into gold and silver...ie, REAL money, IMO...something that won't lose its value over the long run (despite the massive interventions and manipulations on the paper markets of gold and silver as we speak by the Fed and other Western Central Banks and their bullion / investment bank lackies, in coordination with our own Treasury run by ex-Goldman Suchs Herr Paulson...Heil Hank!!!!...Ja Wohl!!!...ist Kriminal!!!) jt
CNEH, an oil company I'm invested in, has $.38/share earning in the TTM, and is about to announce about $.20/share for Q2, but they are only trading at about $4.35 right now. So how exactly is it the market makers faults that your stock went back down to a more realistic price?
> jack
I also acknowledge that the $14.71 price might have been too high. However, the point I am making is that this stock is being illegally trading according to current U.S. law. Any investment whose purpose is to drive down the price of a stock is illegal. If protection is needed for the largest financial institutions, why not the small cap stocks that have been under attack for several years.?
You are accusing the management team of being in on a scam. You should be careful what you put in writing. By the way, two of the insiders own close to 2/7 ths of the shares, and couldn't/didn't sell during the above period.
This company has been in business for 20 years, and has had their ups and downs. Help me understand the analysis you perform to determine a "pump and dump" versus a legitimate investment. By the way, I wasn't asking for a valuation of the company. I was simply stating the trading activity on ROYL has been and is illegal - not all of it, but a lot of it.
I did buy and sell along the way and have a fairly low average PPS. I did indeed miss out on the $14.71 selling opportunity, and did underestimate the speed of the market. However, what does your comment have to do with my article. I was mearly stating that ROYL is a textbook example of illegal trading. Are you saying it is acceptable practice for institutions to drive a company's PPS down? For your information, that is illegal. I do agree an individual investor needs to take responsibility on themselves, and I did a reasonably good job at it. However, when they allow naked buying, then we will have an equal playing ground. I think what you are saying, is that everyone knows the system is corrupt, you have to play along with. Well I played along with it, but I plan on at least trying to do something about it.
This statement back in june was more than enough to convince any investor that would put money into a small cap to sell when the price got above 10 per share. As for me i dumped all of my royl when it hit 13 and will be happy with tripling my money in less than a year in today's economy.
And again...its a $55M million market cap. Which equals wide swings and volatility and you're trying to "call out" the Market Maker's... C'mon.