Hi Cali!
The stock decline is due to several reasons:
1)End-of-year tax loss selling --- Knic traded above $10/share for 5-6months, so I would imagine a good % are taking losses now.
2)Margin calls---since this stock has so much potential a large % of investors margined up, because the chances of the stock trading at these levels was slim and none ( back in the Summer and Fall). So some people including some of my clients have been hurt by margin squeezes.
3)Private placement manipulators---they can convert their debenture as low as $5.25/share(Market price - 15%). Since a little over 35% are off-shore, they have been SHORTING Knic to get the favorable price. As you may know OFF-SHORE SHORTING is not reported, so the latest NASDAQ short interest does not show any increases. (If you rob a bank, you are not going to take the video camera and film your act).
January 2nd trading is important, if the stock begins to rise above 6 and 7, then all the above "stock price busters" will no longer be a factor. BUT, if the stock begins to climb and the climb is impeded by selling at 6.5-7.5, then the Private placement holders could still be leaning on the stock.
I am very surprised the stock has made it to $5.75. And You are right, with the Assets, sterling balance sheet, Pure Energy, and core business, there is no way the stock should be here. I guess when you have no institutional sponsorship, these small stocks can be easily manipulated and inefficiantly priced. |
