I think we're seeing a few things here. First of all, the same guys who have been shorting the stock are probably the major buyers today. They (by they, I'm talking about the less reputable brokerage houses that manipulate small-cap/bulletin board stocks, usually the ones we get daily cold calls from -- Bronx accent, name ends with an "i" or an "o", reading from a script, will call us back in the near future with a sure winner that is guaranteed to lose at least 50% right after you buy it). Sorry, I digressed a bit. Anyway, they've probably been selling stock to customers without buying it, hoping they can buy it later at a lower price. However, today we saw more buyers than sellers, which drove the price up and scared the shorters into covering their positions before they literally lost their shorts. Anyone who watched the tape today saw the bid and ask on Struthers continually go up and up, leaving the shorts scrambling to buy stock.
Why more buyers than sellers? Last Thursday and Friday we saw the stock go down big on very heavy volume. As ugly as it was, technically it was a good sign as it signaled a final sell-off (everyone who was going to get shaken out of the stock got shook out last week). That only leaves buyers. Also, I think that people following the stock finally feel comfortable that the 10K will be released soon (probably this week) and will contain information regarding the progress and legitimacy of the company and its business plan. We've also got some people averaging down who have been waiting for a reason to jump in.
What to expect tomorrow? Who knows. With the stock closing at its high for the day, I'm guessing that we may see a gap in trading tomorrow (i.e. open higher that 1 3/32). Some folks who bought at .50-.60 are up 100% already, so there may be some selling to take profits (novel concept with this stock), but continued short covering and renewed interest in the stock in anticipation of the 10K filing and 14C approval should create some upward pressure to keep the stock going for a while. People who are in the stock at this point are probably in it for the long haul, especially with the company being so close to getting approvals and releasing news. If no one is selling and everyone's buying, we should continue to see positive movement. Hopefully the company can piggyback off of the newly generated momentum and file the 10K, send out the 14C, and start releasing some news to promote the stock. Remember, their goal is to get the stock to at least $3 to get listed on an exchange (and they've still got a long way to go to get to $12, which was the high before delisting ($5.25 pre-split).
Enough speculation. Can't wait for tomorrow. Here's to a profitable Tuesday.
Gator |
