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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"

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To: Patricia Zatarain who wrote (1021)7/7/1997 11:10:00 PM
From: add   of 1985
 
The bond market is usually less efficient than the stock market. There are usually fewer bond traders than stock traders. With no upside, it doesn't make much sense to actively trade a bond. Its only the downside risk(default) that you really care about. With fewer players, there is less liquidity and less information in the bond market.

The same is true for JTS. The next result is that the bond market may be just reacting to the news(bad) now whereas the stock market moved a couple of weeks ago.

Its obvious now that a substantial number of people knew( or deduced) since mid-JUNE that the company was not doing well. This is a clear case that if you only rely on public info, you are going to be at a serious disadvantage. Lots of people knew, and they drove the stock down to 1/2 before this press release about lower revenue and presumably lower earnings.

It would be interesting to get the list of big sellers.
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