According to my broker, who is on Spine's board, there are no takeovers imminent nor any news to account for the huge volume. Apparently, on Tuesday, there was A LOT of short covering, as it became apparent that the stock would NOT collapse once it hit 35. The short covering sent it rocketing to 39. However, my broker said, at 38, the shorts started selling it en masse, which is why it collapsed yesterday.
A long-time holder myself, I was very excited to see it break above 35. Once through 35, I figured it had a good chance to become a 40 stock, especially since earning probably will once again be strong. However, once it fell below 35, back into the trading range, I interpreted the break out as a false break out and the move to 39 a "distribution top." I got stopped out at $34.50. And man, oh man, am I pissed.
Not sure what to do now. Thought about buying it this morning at 33 1/8 but, as usual, hesitated. As of noon, it's below 35 on very low volume. Could go either way, I suppose: pop through 35 on high volume, or sell off and try again in a few days or weeks.
Long term, I think it's a hold: nothing but good news ahead. If given a chance, I would certainly buy it back in the high 20's. I doubt I will get the chance.
Shaken out and up,
Pacmac |
