Hi, Thotdoc -- If you're referring to the greater stability, apparent underpinnings of support around these levels and the reduced volatility (on the downside) shown by the stock of late, IMO the likely answer is that the Dain Rausher initiation of coverage and Buy recommendation has "legitimatized" (if that's a word) GMGC as an investment in the minds of many current holders and prospective buyers of the stock, and hence may serve to lessen the likelihood of sharp sell-offs/profit-taking following news-related spikes, less likelihood of short-selling, etc.
In other words, the stock's future trading activity could be substantially different (assuming a continued favorable unfolding of events at the company) than the historical pattern of way up, way down, and no consistency of trend.
This doesn't mean, of course, that there won't be periodic material sell-offs in the stock in the future for whatever exogenous or company-specific reasons, but it does suggest that there will now be greater buying interest in the stock on the part of both institutional and individual investors that should serve to limit the downside (and which could also enhance the upside moves in the stock if/as/when good news comes out).
Moreover, there's an investment-related angle here on the old cockroach theory: The Dain Rauscher coverage/recommendation could be the first of more (hopefully many more) to come. Time will tell, but with all the positive developments at GMGC over the past 12 months, I can't believe that Dain's analyst is the only one discovering the merits of this company and its stock.
Just one man's opinion, Thotdoc. FBOW, I bought more yesterday.
Best,
ea |
