Touchstone Exploration Share Discussion Threads

[hiddendepths] 02/9/2021 12:27

Yes, it was a quill pen spreadsheet. :-)

Actually, it was Supercalc 1 and I was one of only two analysts in the firm with a computer back then.

[kaos3] 02/9/2021 11:41

nice job! now there are computers - but I assume on EM "small stocks" listed as ADRs and similar abroad - there still is a chance imho . I did it

[hiddendepths] 02/9/2021 11:34

Back in the day, I got big orders for my broker (Warburg) when I devised a simple spreadsheet showing arbitrage prices for Royal Dutch and Shell in London, New York and Amsterdam. There were also a couple of derelict funds which had nothing but Royal Dutch shares. Switching between those instruments was pretty profitable for the switchers. But as the size of the trades was often enormous, the commission paid to us as the broker (just one side though!) was mouth-watering!

[pro_s2009] 02/9/2021 11:33

KS, the pipe will be 200mmscf. The facilities might be 100mmscf to start with, of which 90mmscf capacity will be used. Then the facilities upgraded when they drill extra wells on Cascadura.

Thats all.

They are not going to lay a small pipe and then dig it up and lay a bigger one... :)

[awise355] 02/9/2021 09:38

I'd say they mean upgrade the facility to handle/process the extra volumes.They are likely saving the capital till they need it.

[king suarez] 02/9/2021 09:12

I thought the intention was for NGC to lay a 200mmscfpd pipe originally? When you say 90, upgradable to 200 in the future - what does that mean, a 2nd pipe? How do you 'upgrade' a pipe that has already been laid? Thanks

[davidblack] 02/9/2021 08:37

Crest reports the borrowed position as it’s required to do by the regulatory authorities in London but this is a Canadian company.

So reporting is just to meet the local U.K. holding positions with anything happening in Canada subject solely to Canadian Sedar securities rules. Sedar only requires disclosure of Canadian long positions above 10% unless your a director or connected person. The U.K. requirement being 3% of course.

The issue here is that TXP is not an automatically “Fungible̶1; stock between the two markets. So only the big players can easily swap and take advantage of this pricing anomaly.

So why hold the two positions on an ongoing basis? Well when TXP starts to get bullish the price in Canada often runs ahead of London quite a bit. So “they” can build up their current matched position now, but reverse it, when TXP starts to move up in Toronto and instead of getting 3c a London share arbitrage maybe get 5c or 6c on the round trip.

Exposure of say 25m at 5c on a low risk trade would yield $1.25m or £720,000.

Not a bad win a boring market?

[soggy] 02/9/2021 07:06

DB I'm intrigued at your suggestion that the 9 million short is some sort of arbitrage. Can you help me understand this a bit better: why would it show up as a continued short on crest rather than just a one off sell, or series of sells, which would be reported on a particular day and then just be part of history?

[sunbed44] 01/9/2021 23:25

Ah a bit like matched betting where you cant lose then. Back high and lay lower as advised by sites like profitaccumulator

[stockport loser] 01/9/2021 22:37

Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price. ... Arbitrage exists as a result of market inefficiencies and it both exploits those inefficiencies and resolves them.

[sunbed44] 01/9/2021 22:33

Db very clever post mate a bit above my pay grade trying to understand that though

[ngms27] 01/9/2021 21:35

No no no.

The pipe is 90mmscfpd and needs upgrading for 200mmscfpd in the future

[rabblrouzr] 01/9/2021 21:00

DB...Is it then Cormark ? do you think? ... they are International with offices both sides of the Atlantic.

[davidblack] 01/9/2021 20:27

It’s a short reported under the Crest system not that “Crest” is the shorter.

Still not convinced there is a material short of 9%. Some of it I reckon is a matched “short London: long Toronto” trade where they can get a 3c arbitrage. Each 1m shares gives them a free $30,000 and at some point they do a swap to cancel both sides.

It wouldn’t show up in Canada as long reporting starts at 10%, but would be seen in the London where there is declaration over 0.5% short under our disclosure rules.

[rabblrouzr] 01/9/2021 19:51

CREST....thank - you. bull8...just wanted to delve deeper into their Alliances.

[sunbed44] 01/9/2021 19:43

Ask davidblack he seems to know all about the short position

[thebull8] 01/9/2021 19:42

Ah you mean CREST....they just supply the info

[rabblrouzr] 01/9/2021 19:34

I thought it was more like CREAT or a variation on that.

[thebull8] 01/9/2021 19:30

Somebody on Stockhouse mentioned Coremark house 73

[rabblrouzr] 01/9/2021 19:30

It really should be IMO !

[king suarez] 01/9/2021 19:22

Is it a four letter word, beginning in "C"?

[rabblrouzr] 01/9/2021 19:15

Help with name of consortia that purportedly has a 9 million Short Position? ... start with a "C", I believe. Do you know if they would be connected with Cormark Securities in Canada?

[rabblrouzr] 01/9/2021 18:59

Monday is Labour Day in Canada as well as U.S.

[thebull8] 01/9/2021 15:54

Canada really is a damp squib. Labour day will be interesting - I believe Canada is closed next Monday and Tuesday