I was buying into the close.
I picked up another 5k at less than 19, and was trying to pick up another 5k when the stock turned up away from my limit orders. I had picked up some shares earlier in the day as well.
I am not worried. BEST disappeared from the fray after the first hour, and a seller using the Instinet (INCA) came in and pressured the stock all day. We have been plagued the last nine trading days, with just a few large sellers, augmented by some longs who got into margin trouble. Tomorrow will mark the end of two weeks since the company released 950k shares to the control of the lawyers, the so-called "settlement shares". I think their disposal of the shares through the BEST market maker is just about done. Perhaps tomorrow morning they will sell their last allotment, and they will disappear. If not then, then soon, they won't be a factor.
The other big seller is likely either a short, or Castle Creek hedging in some of their warrants. Once BEST is gone, I doubt the seller using INCA will be pounding us alone.
Once the big sellers are through, then a more "normal" market will return. I can't predict precisely when, but sometime in the next 5-10 trading days, we will begin to repair this damage. I can wait that long.
Paul |
