Obviously, the stock is under pressure today. I have read a number of comments that UBSS may be using this opportunity to pick up cheap shares. Very likely that may be the case. Remember that for every sale, there is a corresponding buyer. Today, the net sellers outweigh buyers and so stock shifts down. Fundamentally, the reduction in numbers by UBSS is big. They hacked a large percentage off the numbers. To an extent this may have been reflected in the stock and is probably why the stock had settled down from the 13 price range.
As a trader, I have noticed INCA, instinet doing a large portion of selling. Instinet is a institutional execution system. Its kind of complicated but ultimately, INCA is not a market maker but may be representing a mutual fund, hedge fund or other large owner.
I have not seen any one buyer. Merrill Lynch was hanging in there tought early, the first 10 minutes of trading at 12 bid when the stock was 11 3/4 offered. Talk about a trader's delight. Ultimately, they made the stock look like it wouldnt crack, sucked in some buyers, then trashed the stock to 10 1/2. These market makers are the best. Its amazing that anyone has retail or ira accounts with market makers. What an injustice.
I picked up some at 10 11/16 and kicked some out at 11 1/8 but I have some long term and think it might edge lower until company either reassures investors or they have positive guidance at the conference call. I do recall the CEO stating that pricing pressures had moderated a few weeks ago. Remember that 2d is also being phased out significantly and many companies may be cleaning out inventory to ramp up 3d chips.
Personally, when your gut is wrenching and the stock looks like death has warmed over it, I like to buy. When things look rosey, I sell. I dont think that is the case yet. When you see everyone in here bitching and moaning, more than today, I will buy it. Just the same, when everyone was saying it was going to 30 about two weeks ago when the stock was at 13 1/4, I thinnned out my position. Now remember, that I have shorter time frame than most.
Short term, I think the stock may touch lower. Since I have some already, I particiapte in any upside. I would be a buyer in mid to low 10s if we stabilize. I would like to see a response by the company.
Dont forget to analyze the stock relative to your time frame.
Good luck. Call if you want to discuss in greater detail.
Steve...201.791.4449 |
