Jim,
"The thing that intrigues me most about the Mystery Investor from Dundee is why he chose to take a loss. The TA looks bad, but the FA is unchanged."
There could be a dozen reasons. It's in our nature though to always tend to assume the worst case scenario when we see somebody sell.
My bet is the reason I tried to explain. Namely, that many of us felt it was a no-brainer, sure thing that the price would never pull back to the 4's again. After all, this was FDA!
Now that we're back in the mid 4's, many people who committed money that they would only commit to "the sure thing," now realize that they can't afford to tie up that money in a scenario that now seems to have share price risk again. Many people might have heavily margined thinking that it would be a short term flip in the $7 range. Others may just not have those funds available for more than a very short term. Others just get discouraged by the bruising activities of Acqua.
What seems clear though is that this Dundee seller had no insider knowledge when buying (all shares bought after the NR), so I doubt they have any insider knowledge in selling.
Everyone has a different reason for buying and selling. Remember, there's a million stories in the naked city.
joe
FWIW, I looked back at the last two disappointing NR's (HC and EU approvals), and the Dundee trading activity preceding them. I'm happy to report there was no sign of any informed selling through Dundee. |
