Or, the recent sharp drop in share price could be related to fundamentals and supply and demand as in: the level of speculation and euphoria on this stock brought in a lot of buyers who should not have bought in the first place. Then, a number of investors saw an opportunity to sell at great profit, into the froth, to people who wanted to get on the band wagon at any cost. Then, the "buy at any cost" people ran out of money and there was no one else to sell to at those levels. So, as in any market driven by supply and demand, the price dropped. When the price dropped, many of the late comers sold in a mini-panic and drove the price down some more.
Did ya hear the joke about the investor who bought a company at 10. Then it went to 15 and he bought more. Then he again bought at 20 and again at 30. Then, he thought he'd take profit (he wasn't greedy!) and called his broker with an order to sell. "Sell to whom?" the broker said, "You now own all the stock and no one else is interested."
This is not, by a long shot, the story of JDS but does illustrate the need for new buyers to regularly enter the market in order to sustain a short-term explosive price run.
Ciao,
David Todtman
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