J.F., Your examples are probably to the extreme, most likely it would either be the latter(dtec rising to Phox)I say this only because of the CFO's response to my questions. Another possible and much more likely scenerio than PHOX sinking to DTEC, would be a common ground, bid .16-ask .18, but I don't even see this happening.
As I stated before I have been watching this develope for sometime, in fact I bailed out of Photonics last year because the did a 1-5 reverse split. At the time Photonics was around .50(I could look it up, probably a much better idea)but the reverse placed the stock into the 2.50 range and has done nothing but head south. With 4 mil outstanding, much less floating, shares available the stock is about as low as it can go in fact, it is probably undervalued by at least 100%. Now the dilution factor maybe(probably)why phox is selling so low, in this case, dtec will rise to at least phox's level. I believe the company as a whole is on the rise, even back when I sold, I felt management was in place for a nice return. But reverse splits are normally horrible for the stock price. Just to illustrate how volitile phox is the bid dropped 25% on just one 6000 share transaction. Imagine what will happpen if just 25,000 bought. The price would skyrocket.
There is a lot of confusion out there. I don't know what quote, news service you use, but WSRN, and almost all the others stll have Photonics ticker as PHTX, because of this when ever any news comes out with the ticker PHOX the news services don't even log it under Photonics. The only way I found out was through E-TRADE, they have the symbol and company correct. DTC DATA TECH is everywhere on the internet and the two companies have a fine web site, but these two (at least to the NASD, Wallstreet), don't exist literally. Now it is worth buying dtec and raising hell, because the situation can only work to our benifit, believe it or not. This is really rare, but it is true. Notice today not one trade on dtec, unbelievable.
All that is needed is for folks to blow the whistle to the news services so the proper news is diseminated. The MMs are really jittery, the spread is widening because they don't have the stock. I placed a 20000 share order a couple of days ago, it took the MM over 24 hours to fill it. Then they double the spread. If People would buy the stock would have to rocket especially the bid, but nobody wants to be the first in the water. |
