Well, JED, any speculation on what happened today? My theory would be that the drop a few days ago was started by a lot of brokers calling in margin calls before the end of the month. (They had hoped to cash in on the news release earlier) This process was interupted when the stock was halted. Being the end of the month, these margin calls had to be paid up today, even if the news release was good. So, the stock takes a dive from all this selling, some small investors, who did not know how to interpet the news release just saw the price falling and thought the release must not be that good, got sucked into the selling frenzy and the price drops over 40 cents. After all the margin calls are gone, the price is cheap and buying brings the stock up to close down 13 cents.
What does Tuesday hold?? If my theory is right (or for some reason wholely different than anything I have said here) the stock should continue its rise.
Is it worth even wondering about in terms of a lesson for future investing? If in the future I am faced with a good press release at the end of a month and I want to pick up more shares....wait till mid day. (PFG actually went up 14 cents right after the market opened, after a 45,000 share block went for about $1.75...somewhere near that as my memory is failing me)
Just pondering life and its hidden meaning.
Have a great weekend.
Best of Luck,
Ross |
