Peter Hristov

Kodiak Energy Inc. (OTC:KDKN) Turns Into a Shorting Pawn

by Peter Hristov July 22, 2011
Yesterday, Kodiak Energy Inc. (OTC:KDKN, KDKN message board) scored the highest trading volume for the last 52 weeks. Almost 2.5 million shares were traded during the day, which is way above the daily average of 140 thousand shares.

On the background of this increased trading activity, KDKN share price jumped 25% to $0.128. Logically, investors would suppose that some event like a promotion or a press release must have stirred the market yesterday.

However, much to their surprise, there hasn't been any news or promotion for the company. As if the trading activity happened on its own.

The enigma around KDKN got even more complicated when FINRA released the short volume data for yesterday. It turned out that the short volume for the day was comprised of 2.3 million shares, or nearly 95% of the whole trading volume.

Moreover, on the intraday chart, it is visible that 2 million shares were traded in one transaction that took place around 10 a.m. EDT.

That being said, no one can be sure what were the intentions of the investor who made the short trade yesterday because FINRA does not specify whether the short transactions are opened or closed positions. Therefore, investors will have to keep a close eye on KDNK chart in order to see if any sharp movement will appear in the coming days.

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