Hi Chisy, There's a few things going on here. One is that people are more capable of interpreting these ostensibly large numbers better than the company thinks they are. Another is that people want to hear about sales of the end product, not just production of samples from Hanil (which is necessary, to validate the Hanil production capability). Remember that Valence has already provided samples to Hanil's customers on their behalf.
On top of all that, there has been blatant manipulation of the stock price this last week (since Thursday or earlier). The same market maker has been sitting on the ask and not allowing it to go up, no matter how many tens of thousands of shares are bought. Then without any sales taking place, the MM dropped the ask. Last week the price was progressively moved down from above 7 to 6.5. The share price could easily have stayed up in the 7's without this taking place. Occasionally today he moved to the bid to take some back (though at a relative loss). Normally the MM would love to run the ask up when there's demand for the stock, and whack it down later to cover. This is not being allowed to happen, no matter how much buying interest there is. Did you see yesterday's flatline price? 30,000 shares bought all morning, and the ask never raised. Assuming the MM is in the game to make money, and he's not making it on the spread, he has another agenda.
I anticipate a private financing deal, and the stock price is being very carefully channeled as a prelude to that. Just a WAG, though. |
