Another day of heavy-ish trading and still no breakout.
Can anyone help me understand what is going on here ????????
I'm really suprised that for three or four trading days we seem to be
so flat around 3.25 but with relatively heavy volumes ?
I'm now getting suspicious about the $3.25 number, and can only think
of three explanations -
1) there is a buyout due at $3.25,
2) so many people have "bought" the $3.25 rumour that the number is
self-fulfilling (and will continue to be so until there's some hard
news - i.e. no-one is going to buy higher than 3.25, just in case),
3) there is no resistance here and I'm just seeing pictures in the
clouds.......
The volume isn't so high that we can discount the sheep mentality.
IF there was a buyout rumour on AOL (allegedly where the info came
from) and on SI, then maybe 50+ people could have bought into it. IF
some of these are day traders, and they have $20k+ each to play with,
then we could easily see 200k shares trade in a day simply because
of this. (Especially if the buys and sells are counted separately ?)
If this is true, then where does this leave the current reality in the
SEEQ price and what happens next ?
My guess - (and it's only a guess) - is that there will be some hard
news before the end of next week and, provided it isn't a buyout,
there will be a move to >$4 ? Alternatively there will be brokers
briefings in the next few days, and some real money will start to
flow.
As I've said previously, I'm a long-termer here and like this stock.
I am currently looking to extend my position with a buy at $3. I do
not consider this a good buy much above $3. It could go to $4 soon if
if one of the above scenarios occurs, but I'd much rather see SEEQ
turn in a 10c quarter first ! In time I believe they'll do that, so
if the current bubble bursts first I guess I'll be here a while
longer...... This is something I'm used to as a SEEQ long-termer :-) |
