[ Comments on Brokers and ASTM ]
In the past, NDB was as good as anyone else at gettings fills in the spread. However, now that the new SEC rules apply to so many NASDAQ stocks, you can almost always buy at the bid and sell at the ask, if you are patient. This assumes that the market maker follows the rules. Obviously, market makers that pay for order flow don't want to follow the new rules, since they will lose money. Many of them have discovered that retail investors don't understand the new rules, don't have time to watch if they are being followed, or don't bother to complain about a violation. With many of my orders at NBD, my order does not get represented in the market until I call to complain. It's much nicer with Datek, since there are no humans in the loop who might be tempted to cheat you. I recommend always having several brokers so that you can compare service.
Regarding ASTM: There are many shareholders who bought around $7. They have been down as much as 40%, and have been wishing they could break even. When the 2 day 100% jump came, it was like a wonderful dream and they were waiting for the dream to continue. I think that on Friday they will decide to sell for breakeven, rather than invest in dreams. Once it goes under $7, they will hesitate. However, there is another large group of shareholders who bought at $4. These people will hold their optimism a bit longer because they have made serious money, but are now seeing that paper profit erode. I think that over the weekend it will hit them that the stock is going down, not further up. Anyone who bought at $4 only a few weeks ago will probably decide they are happy to sell at $6. So, I'm expecting the selling to push the price under $6 on Monday. |
