Yes, I agree that the stock price is very low although it was up nicely in percentage last week. I think that right now the stock is digesting at $1 level and let some impatient shareholders take "the chance" to get out. Last Monday's volume was 238,500; Tuesday was 133,600; Wednesday was 90,800; Thursday was 105,800. Total volume of these four days are 668,700. I guess that it is about 300,000 shares in selling. When the profit taken ends, the stock would start to fly up again.
It is very interesting to see that on Friday when the market was selling off, GTTIF held well in the morning---no one to sell. At about 12:58, a trader, who has been trying to push the stock lower for a long time for whatever reason, came in and play his trick---selling only 1000 share a time at $7/8 again and again. Since it was lack of buyer at such a market condition, when he finished the 4th time, the bid price went to $13/16 and the ask price to $7/8. Then he sold another 500 shares at $13/16 and let people feel that the stock was dowm $1/8 (down about 13%) and got big hit. He hoped some investors were scared and sell theirs too. But no one sold even one share. Instead, some one took this chance to buy 4500 shares at $7/8 and another 5000 share again. At about 15:35, he used his trick again and sold 1000 shares a time for three times and 500 shares for the final one at $13/16 and hoped to push the stock even lower again. But he failed. Some one bought another 1000 share at $7/8 to end the Friday's trading. It seems that the trader was the only seller in Friday's trading.
Since Friday's volume is only 20,500 shares, which is very light comparing with the other four days, it is not bearish for this stock at all from a technical analysis point of view. In fact, it shows that buyers are waiting for entering into this stock and very few people want to sell at present price.
I am also a buyer for this stock and believe another shoe (the settlement for the last lawsuit) would be dropped in one month. Moreover, the earning for the third quarter should be good as stated "This corporate restructuring will result in savings to overhead and operating costs. The Company is working to reduce its operating costs and results are expected to occur in the third quarter." If so, we might see this stock to be $2-$3 in short term and $5+ in long term.
Albert |
