Info on volume
Well, some interesting action on the thread finally! As for the
action in Legacy, this is due to a buy recommendation from the
micro-cap analyst (so I'm told) recommending this stock at
$0.50 or under. In looking at the recent buying volume, it was
evident that there were do instutional buyers as I did not see
block trades of 100K or more on the 5th or 6th. This means that
the volume was from retail investors only. As for the share
consolidation, I don't know why you are against it because it
will reduce the # of shares outstanding, making it more appealing
to instutional investors. If they start buying, then the available
float is reduced, making it harder (relatively speaking) to obtain
shares on good news, which helps to push the share price up.
One thing worth mentioning about consolitation is to remember the
situations under which consolidation happens. Look at Canadian
Airlines. They consolidated 10:1 when they hit ~$0.40, now they are
at $1.95, lower, but they did not have anything to look forward to.
Legacy on the other hand has had all of the bad news out and is now
forward looking. This is quite generally a positive sign when
coupled with a share consolidation.
I also called IR and got some other info. Apparently they are back
on track with their suppliers regarding credit lines (another
positive sign), and that they expect several better quarters from
now on. I was also told that there would be some other announcements
near the Oct meeting. I got the impression that these announcements
would be positive.
Look at it this way, you've been through all the bad news, so why
sell now? Say that you buy today at $0.50 and sell in a year's time
for a consolidated $6.00, that's 20%. What's wrong with that return
in a year's time given where the current inflation rate is?
I own Legacy stock purchased at $1.26 and $0.50. |
