MWB, The increase in size and number of block trades we saw this week shows that at least one big player (all the >200k trades were crossed by SSB) has positive vibes about this stock. Speculation is probably coming into play as we near April when the Williams Co. can (and most likely will) begin spinning off shares of WCG to Williams Co. to shareholders and return value to the parents shareholders (a good point that has been addressed previously here). With only 7% of shares now in public hands, it has been difficult for the big players to make the type of investment in this stock that they are used to. Whoever is buying in now is just establishing a foothold prior to April, when more shares will/may be publicly available. Usually one or two will bring in more big players so we could see a nice pop going into April and continuing. If the spinoff to shareholders does happen, will we see the price stabilize or drop? Probably not as many will hold, but the increase in the float should bring about more buy side demand as positions are increased or created.
I was in this at 24.5 and bought more at 28 (avg. 26.75ñ), and if we see a dip back to 28 I will buy more. If Monday brings more big blocks in the AM, I may be adding then too, as I do not feel it is too late to load the truck on this one. Those big blocks are taking a lot of shares off the table, which only means one thing...the word is out, HANG ON.
The AOL TimeW deal last week caused a brief hiccup in WCG, Q, etc. early on, but as the impact of all the AOL customers having the availability of broadband, sooner than previously thought, it quickly caught on that someone will have to carry the traffic...HMmmmmmm. Does that spark your imagination or what! And don't forget, even the wireless telcos have to go landline at some point.
I also hold Q (28.75) and it acted the same on Fri as WCG, which lends support to the preceding ô.
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