AJ:
Although it is probably a mistake to lump all of these companies together (other than to make a general point about stock trading companies -- which is that they have been and are continuing to be hammered), I do think that it is time for holders of any stock in the stock trading sector to decide whether they really believe in the companies they have been investing in. If these investors are right, then the current price woes of stocks like NITE, ITG, ASTN and others (which as companies are wildly different, but which have certain common aspects as investments at this point) are truly a gift and an opportunity, at least to those with the resources to take advantage of the moment.
As lousy as ATG has performed from a stock price perspective, it is pretty interesting to me that so few shares are trading at this point. It tells you that few ASTN investors are selling, that most ASTN investors are sitting tight and awaiting what is perceived by them to be a number of likely positive short term and long term developments, but that existing investors are not increasing their positions, and new investors are not yet jumping in with enthusiasm until they see that Phase II and III of the eVWAP rollout are well underway (and producing the volume levels that would justify optimism). The lack of buying pressure is less significant to me, given ASTN's history of delays in getting eVWAP to market (and the consequent need of investors to have ASTN execute before they jump in head first) than the lack of selling pressure (which says that the stockholders recognize that there is little or no downside in standing pat and that the company is financially healthy for the time being).
Let's see how ASTN and the other stocks in this area -- ITG, NITE, etc. -- are doing in November -- both price wise (and in ATG's case, daily volume wise). I personally think this sector (and ASTN) will rebound in a big way after the "fear of October" syndrome dissipates (Y2K notwithstanding) and ASTN's more subtle charms (and the fantastic opportunities that it presents) are better appreciated because the evidence supporting it is in hand and tangible, and not open to criticism as being purely speculative. JMO, as always.
MST |
