Spoke with Roger earlier, it seems as though all the selling activity started immediately after a 100K share block was put out at .39 and it seems we had some shareholders panic. Roger suggested, and I concur, that the 100K shares was put there for the express purpose of trying to shake the tree. If you really wanted to move 100K shares on a stock that trades like WRN does it wouldn't make any sense to put it out in 1 big block.
Now if there is an intentional shake going on here, I would suggest that is likely to be good news in the long run (only my opinion). There would be no particular advantage to hammering the stock in this fashion if bad news was to follow, you would want to slip out quietly to maximize your return. Now if there is good news to follow then putting a little scare out there and buying up the shares, that shake loose, would help to turn a tidy little profit now wouldn't it. Please keep in mind that I am only speculating, I am not telling anyone to bet the farm on a big rebound. I personally expect it to do so, but that is strictly my opinion.
All indications are still that the business itself is progressing nicely, the merger/acquisition is apparently still on track, etc. I do however, hate the way we get what seem to be nothing more than status updates for a while and then suddenly everything goes quiet. I would much prefer to either see nothing between the BIG releases or to see consistent ongoing status update releases. However, these little bursts of update news releases seem to get people overly enthusiastic followed up by them being overly frustrated when things go quiet again.
I guess we'll see how things come out in the wash.
Salut,
Leigh McBain |
