Hi all,
Glad to see a thread started for this stock. I noticed this stock when it dropped something like six points one day for no apparant news. CNBC reported that it was a late reaction to the earlier (a few days maybe a week back) disappointing earnings report. Volume was not very high percentagewise (IMHO, of course). Since than it did a dead cat bounce but returned back to 6-7 range where it is now. I have included a news item that was reported on 5/12. Can someone read between the lines and research further to see it may be the reason? Somehow I feel that price may have been manipulated to improve cost basis of their accumulation. Just thinking out loud and speculating.. Please don't flame me if it sounds stupid! If anything, it shows that someone is willing to invest in the company. Anyways here's the report.
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Monday May 12 11:11 AM EDT
Company Press Release
Source: Xanthus Capital L.P.
Xanthus Capital, L.P. to Make Open Market Purchases of Active
Apparel Group, Inc.'s Common Stock
SEATTLE, May 12 /PRNewswire/ -- Xanthus Capital, L.P. announced today that it will seek to acquire up to six
percent of Active Apparel Group, Inc.'s (Nasdaq:AAGP) common stock in open market purchases from time-to-time.
Xanthus Capital, L.P. anticipates beginning such purchases during the following two weeks and that such purchases
shall continue from time to time thereafter.
Xanthus Capital, L.P. is a Seattle-based merchant bank. The general partner of Xanthus Capital, L.P. is Xanthus
Management, L.L.C. Russell C. Horowitz, the former director of investor relations of Active Apparel Group, Inc., is a
director and majority owner of Xanthus Management, L.L.C.
SOURCE: Xanthus Capital L.P.
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I am thinking of buying 1K shares in the speculative portion of my portfolio (infact I had limit order at 6-5/8 to-day but did not fill). If company is genuinely unaware of reason for drop in stock (that is they are not hiding anything) and business is usual as they claim, then I think it will rise back to the pre-drop levels. Once again, these are my opinions and do your own research before investing.
Regards,
JK |
