Yes, overhang (I saw it defined a little more precisely on the Yahoo! health board in a venture over there during a moment of depravity) is really any sort of lurking selling pressure that could be anticipated...as here, from fired employees, and re-arranged corporate agreements.
And yes, I am not saying they WILL do this, but it makes sense unless you are desperate, to look at the fundamentals here which are that the company has been making steady progress towards profitability, reduced fat, reorgnization, all the plusses. Really it's a stock to buy. So if you don't want it because it reminds you that you got fired or because it isn't part of your corporate strategy to own stock, you would sell, but choose your time. Looking at an up trend you could anticipate that this quarter's earnings announcement, if in line, will be taken very positively because it will be the third positive move in a row. So there will be buying pressure. An ideal time to dump. And that will hold the stock down until that "overhang" is exhosted. As for how large the overhang is, which would determine how long it takes to get rid of it, I have no good idea.
mo |
