Michael,
I certainly can't explain everything, but this is my take. The biggest factor in the number of shares traded is that the NASDAQ double-counts. By this I mean that if you decide to sell 1000 shares to me, your sale counts for a thousand, and my buy counts as a thousand. That's 2000 shares of volume, but really only 1000 shares changed hands.
The other factor is that there has appeared to be a lot of trading activity between market makers. This counts on the volume side, but certainly isn't a trade in the normal sense.
Walsh-Manning controls the shares from the private placement, and has utilized these shares masterfully, placing them in their clients hands. For MANY months, the market makers were buying as much stock as they could, and this could well have ended up in Walsh-Manning's hands as well. They have also been actively pursuing the people that got in on the private placement to sell their shares, which creates even more turnover.
The final factor is that undoubtedly there has been some trading going on. Traders will get in, take a point or two, and then get out. This may happen more than once.
As a long term investor, I need to analyze what the fair value of the company is now, and will be in the future.
Craig |
