you:
bought some when the Numonyx deal was first announced - that didn't end up working out so well. Overall, despite a couple of good trades, I'm still in the red on this stock - didn't think it would fall as far as it did. I'm partially hedged by a short in the semiconductor sector.
me:
Yeah, even though most of the shares I now own were bought under $3, I still have a few shares that I paid as much as $10 to $12 for. Why I kept them is beyond me. Anyway, it's going to be awhile before I get out of the red also. Like you, despite knowing that once the shorts get their teeth into a stock there is no bottom, I expected the market to recognize the value in SPSN much sooner than it apparently has.
No one ever said it was easy making money in the stock market. Of course, as someone that loves puzzles, that's a big draw.
Today's action is kind of interesting. Someone with a lot of cash has been defending $3 all morning. It's probably the same person/group that has been responsible for the rise so far. Given the still very low volume I would guess that most of the selling is being done by the shorts as shareholders probably aren't giving up their shares yet. Anyway, the buyer doesn't seem to be interested in raising the price just yet. We may be here($3) for a few days, or longer. Probably as long as the shorts seem willing to feed the buyer. Only time will tell who has the best funding? The winners in these wars of attrition are always the best funded party.
At a 1m share trade day that's only $3M if they do all the buying. The buyer probably only gets 40% of the shares he bids on which amounts to $1.2M a day. For some funds/groups that's not even peanuts. |
