Here are the ten lowest closing prices.
I don't have the ten lowest closing bids, but these are the ten lowest closes in February:
25-Feb 8.00
24-Feb 7.375
23-Feb 7.625
22-Feb 8.1875
18-Feb 7.7812
17-Feb 8.0625
7-Feb 8.1875
4-Feb 8.2812
3-Feb 8.25
1-Feb 8.3125
Note that the highest is 8 5/16, and the closing bid could have been 8 1/4 on that day. As the price approaches this price, the incentives decrease for Lehman to drive it down (if indeed, they are selling against their converts at all). So if we see the price climb to this level on Monday or Tuesday, I think LEHM will disappear from the ask (unless of course, they are selling for some disenchanted customers).
Incidentally, some suggest LEHM can't sell while they have a Buy recommendation on the stock. I don't buy this at all. The shares are held through a subsidiary (Tailwind), which can almost certainly be involved in legitimate hedging actions.
In any case, the window for buyers to buy this stock while the selling pressure is still on, has shrunk to only Monday and Tuesday. If the stock rises above the point where LEHM can sell to their own conversion advantage, then the buying window is even shorter.
I believe a lot of people are sitting on the sidelines waiting for the variable conversion uncertainty to be removed, before they jump on the stock. Also shorts will try to cover at the same time.
I really like the price action in the last three days, given the Visix news. Next week, we could see a nice pop, even before the inevitable FDA approval comes.
Paul |
