Sorry, gentleman. I must add my 2 cents. To categorize GATE as "oversold" is misleading since the market for this stock is relatively illiquid. It is no longer a National-listed stock, but a BB OTC stock controlled by one MM.
This MM appears to ignore buy orders placed between the bid & the ask. IOW, he only executes the orders he wishes, probably those placed through his firm. IOW, the stock is subject to measurable manipulation. While the price could be labeled "artificial" since it may not necessarily reflect true market value, it certainly cannot be labeled as oversold since the volume of trades in GATE are relatively insignificant.
For example, if the market for GATE securities consisted of only 10 investors, & 4 of those investors were selling through that one MM, & the stock price dropped 20% as a result, but none of the other 6 investors wanted to bid the price back up, would you argue that GATE is oversold? The stock had moved up to the 6-7 range recently on open market buying by ACTL. That buying has now ceased.
I don't know how clear my example is, but the bottom line is that there are very few investors willing to buy this stock right now. Its future remains uncertain. Supposed revenues are about a year away, which is the story we've been hearing now for 4-5 years. It takes a certain type of investor to buy GATE with conviction to bid the price up. IMHO, they are far & few between. Hence, I would argue that the stock is not necessarily "oversold," but that there just isn't much investor interest at this point in time. Perhaps things will change after will turn the Y2K corner. |
