A review of the trading behaviour of ILNK the since the beginning of June.
Many of you have begun to become extremely negative concerning ILNK due to the steady decline in share price.
I will begin by saying that the more negative the sentiment on the Yahoo Board is, the more stock I will be buying. Buy when there is blood in the streets, and many of you are by virtue of your behaviour priming the ILNK stock machine with your own blood.
I admit that I too was fooled by the nice little bounce off of 7/8's the other day, but considering price levels and looking at the chart, this third drop for a triple bottom wasn't over.
It will be interesting to see how price holds up over the next couple of days. JNC still has a view shares to unload, but not that many.
Technically a significant event occured in yesterdays trading, and that is we had a spike in volume.
The average volume for ILNK in June alone has been 127,585 shares, and looking back the last three days we see a pattern of increase in volume on this stock.
Friday 101 800
Monday 144 800
Tuesday 259 200*
*Spike in volume(Twice the Monthly average)
I looked at my order journal yesterday, and there were no large orders going through as an anomaly to the volume, but MM's were filling 500-2500 share orders all day with a few 4-5K orders in the mix.
So to sum up events
1. Investor sentiment very negative
2. Stock price still looking for a third bottom
3. JNC still with a few shares to shake out, but dilution
almost finished
4. Nasdaq trading sideways/upward
5. Red Cube/ILink integration full speed ahead(deadline
July 4th).
6. WH partnership seen as a positive from Edwards(he knows more than we do about what WH intentions are and by Edwards comments concerning the company, we do not have a CEO who is looking to jump ship, but to drive this thing and turn into a profitable venture.
7. Spike in trading volume(could be the wash out at the end of JNC dilution, or it could be someone scooping up shares on accumulation, or both.)
My interpretation:
Very bullish for the mid term. Accumulating at these levels is a good thing, and I am a buyer. The tree might shake a little more, I honestly don't know, third bottom forming a wedge under the 200 day average instead of a quick spike, but regardless, JNC days are numbered on one hand, and stock volume is rising.
For those of you complaining about your stock being in the toilet, remember that when you do sell and the stock begins to climb again. Don't rush into the stock again unless you are in it for the long haul, otherwise you will drive yourself crazy and become poor.
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