Exactly why IMAT will soon fall....
I myself would like to know exactly why the next plunge will take place. It would be interesting and useful to interview a sampling of those that are about to sell. Why did they not sell a few weeks ago? Why don't they simply hang on to their shares for perhaps long haul prospects?
Here is what is KNOWN....
The overwhelming predominance of the TA indicators I track show clearly that IMAT will suffer a further plunge. The indicators don't say how far the plunge will be (not yet at any rate), just that there will be another sell-off.
Could this clear message be wrong? It's possible. But the predominance of TA indicators don't generally give 'false' signals. The only thing that could likely otherwise happen is that something quite **unexpected** might just pop up, like a significant PR coming out of the blue. However, the Imatron PR picture now is even more predictable, **far** more, than before, and any positive PR is very unlikely to occur --- not until the end of the Quarter. Thus, I'd go with the TA, and expect another sharp decline in IMAT.
Here is what one might SURMISE....
--- Competition from the really big players, like GE. There is continuous talk on these threads about GE now having a possibly superior, yet cheaper, product than Imatron's. If **any** substance of this hits the wires, IMAT will plunge **enormously**. Even the mere threat of this tends to cause people to be reticent about holding IMAT. Read one of the most vocal and cogent of Imatron's thread skeptics: messages.yahoo.com
Other factors that could easily play a part in sending IMAT down....
--- The IMAT Market Makers, daily wielding ENORMOUS power over IMAT, seem to feel that IMAT is heading lower. Their bid sizes are small. And their bids now can be seen generally three to six ticks lower than current market price. Support is thus thin, and waning. Collectively the MMs almost exclusively call the direction a stock will move, and they clearly appear to be signalling that IMAT is due for another drop.
--- Institutions aren't interested in IMAT. There are too many other good **companies** to choose from, with far better management (perhaps one of Imatron's weakest links). Large block trades at bid and lows of day over the past week tell the story of how Institutions feel about IMAT/Imatron prospects. Not good.
--- A few ardent supporters of getting "scanned" post on these threads, to be sure. But with insurers unwilling to pay for the scans, the thin market of better-off oldsters may dry up fast, after they've gotten their faddish scans, and won't be 'needing' another one for five years or so. The scan market may end up like the Chia Pet market --- sure there's a market, but how big? Fears of this add to IMAT instability.
--- Downturn in economy in general.
--- Downturn in California economy, and power problems, rolling blackouts, etc.
--- Heading into slow stock market period of the year, people are into other things now.
--- etc.
Let's all keep watching!! |
