>>>If the mutual funds are selling, someone must be buying and it is
certainly not the public if SI threads are any indication. The only
parties big enough to be on the other side of these transactions are
other mutual funds, pension funds, brokerage houses and market makers.
John, you forgot to mention the short sellers. As of June 15, the short interest is 2.5 million. Given yesterday's volume of 453k, there were only roughly 226.5k buyers who bought shares from the market makers, and 226.5k sellers who sold to MMs, and the price dropped quite a bit. So it may be far-fetched to say there were big buyers.
Just because this is an Amati forum does not mean people should only
paint the rosy side of the story. A few days ago, I actually placed a
buy order for 400 shares on margin at 19 3/4, 5 minutes before closing, because the price was temporarily bouncing up. I am very thankful that it did not went through because otherwise I would have been roughly 40% down, and my broker might liquidate my holdings without giving me a coutesy call given the current market volatilities.
The fact is investing in Amati now involves substantial risks (and
possible rewards.) This is a stock that has run up from $1, and has
dropped about 50%, and it does not have earnings or firm contract yet.
In other words, there is no support for the current price except
speculations for huge future earnings. It has been rising faster than
the overall market, and dropping faster too. There appears to be more
selling presure than buying pressure. Margin buyers may be forced out,
and the lucky ones who got in low may want to lock in their gains. This is a game, and you just don't know with whom you are playing, or what their next moves may be, when you are handing in your money.
Caveat emptor. A lot of people have been hurt. If you have not read a
confession here, you can find some on the LRCX thread. At least no one
should buy on margin right now.
cc |
