Its hard to say what the market reaction will be today.
I don't think most investors in the stock will view the EPS announcement positively, however its pretty clear that its what the big players think that count.
Yesterday, and Monday, we had a huge seller (who wasn't Castle Creek). I estimate that this one seller sold over 200,000 shares. Yet there was major buying coming from two houses, that kept the price from dropping much. The buying came through the same market makers who stymied the last sell-off into the 4s.
Clearly what these elephants decide, will set the pricing today. I suspect that the large seller could have been motivated by Castle Creeks large sell order at the ask. But it is possible that the seller knew about the EPS announcement, and sold ahead of the news, fearing a negative reaction.
It is very unlikely that Moltech bought EPS, to abandon its principal business of repackaging battery cells made by others. The statements by Moltech officials refute this notion. EPS revealed they would be repackaging li-poly last Feb/March, and yesterday Moltech confirmed that EPS would continue with this effort. So all in all, the news is only slightly negative (IMO) for the long haul. But that doesn't mean we won't get an adverse reaction from some players.
But the large players saw this news before the close yesterday... the news came out a half hour before the close. Strangely, the stock actually was rallying that last half hour. The big seller who sold on Monday and Tuesday, had stopped selling. At one point in the last half hour, the buyers had taken out all the orders below CC's large order (which at that point was shown as 21,000 shares on the ask at 4 15/16).
The large players will likely set the price today, at least by the end of the day.
Paul |
