Yeah, that was some food fight. Glad to see you're here to clean up the mess.
About that options trade.
Well, I'm not exactly following his bet. Just increasing the size of mine.
I think the stock was "managed" down to the 10 range a few months ago for the benefit of those who funded a $30M private placement. Stock was shorted on the way down to the tune of about 2.3M shares effectively taking much of the risk out of the private placement. Then the covering occurred without any really notable short-squeeze.
Picked up around 30K shares down there, so I was basically long from the 11-14 range before I saw this options activity a few weeks ago.
I don't really know who the buyer of the options are, but perhaps someone who is looking forward to MSGI's forthcoming IPO's. Wired Empire is one which is expected to compete favorably with KANA and for a lot of reasons, appears to have a better suite of technology designed to manage inbound and outbound communications.
So, perhaps the options buyer intended to benefit from the stock's recovery from its "pre-managed" decline as well as the expectation of one or more successful IPOs...
BTW, this stock has caused a lot of grief and produced some notable tax losses for a lot of people who bought high and averaged down. If your investment horizon is as short as the tempers that flared here last night, well, then tread carefully.
But I think the best is yet ahead for MSGI.
JMO,
Mark |
