Janice,
Ok, I stand corrected on the NEC deal. The stock was up
for a short time around 1:45 pm EDT following a trade
of 30000 shares which I guess was an institutional trade.
But then, the stock started declining and kept losing
ground for the rest of the trading session. There were only
3-4 major (>20000 shares) trades during the day, one trade of
100000 shares around 1145 am which could have involved
an insider (just guessing). However, the end result was
that instead of the sustained uptrend lasting all day
which we have seen in the past following other OEM announcements
(such as ACER 2 weeks ago), this time there was almost
a lifeless slump at the end to finish the day near yesterday's
level. So the only thing I am pointing out is that although
the stock is still trading near its alltime high volume
levels, there seems to be a certain resistance level that
it is up against (about 43-45). I think it is healthy
that the stock has found a narrow (support-resistance)
level and that it has settled down in this trading range.
If it stays in this range despite heavy volume, it will
be ready to break out on some very positive news (like
earnings reports). However, the days of wild, speculative
and anticipatory swings on virtually no news that we have
experienced over the past 6 months are I think behind us.
Also, even if some very positive or very negative economic
news develops, I doubt it will affect Iomega very much.
Regards,
Kunal |
