Van
I'll give you two answers. One is cynical, one is not:
1. Noncynical: Where a big block of stock is being sold, it's usually sold at a discounted value. You're really giving the buyer a bulk discount for buying the block. The discount usually runs about a 1/4 to 1/2 a point, depending upon the size of the block. (The answer is a little more complicated, but that's the general idea.)
2. Cynical: Just about every day for the last month, whenever RSYS has shown any serious sign of moving up, "someone" (read broker/short-seller) has sold a block of stock at a lower price. This has particularly been the case with the last sale on just about any day you care to look at. To be able to control the last sale means you can pretty much control the "computer" at the last second of trading. Only a specialist, acting on his own or in league with a broker who's selling short, has that control. In other words, the stock is being manipulated. Right now, it's being manipulated down. Last year, the "powers that be" were long in the stock, so they were manipulating it up.
As long as the company's management lays back without a word (see my prior posts), it'll keep on happening because the SEC is too busy to interevene, and the NASDAQ is notorious for letting this kind of screwing around go on.
Burt |
