Trader,
Please check some of the previous posts for the question you asked. Dan Thomas and few others have given their insights.
There are several possibilties in my opinion. Three of my reasons are:
1) The recent drops in the market, allowed many quality stocks to become available at a cheaper price. MOOR had held the money steady, so I believe some of the stockholders took the opportunity to sell this company and move on to those quality companies which pops up fast.
2) Certain people had margin calls, or certain stocks they own dropped bad, and thus they had to sell this stock to cover the margin calls. ( Cecil mentioned on his post on this thread that he had to sell for this reason)
3) December is coming soon. Tax write off... Many people have bought MOOR before the bad news. They had bought at above 2 or even above 4. I believe they too decided to take their money, write off, and move on to those quality stocks.
When I said quality stock, I am not saying MOOR isnt one. It will be ONE soon. I hope others in this thread can give you more input.
And lastly, about the options purchase, I dont think MOOR management did something foolish. They are infact trying to please the shareholders whom I believe they have neglected. (Well as every small companies that are on raise shouldn't try to please shareholders) They need to focus on building the company first. MOOR has worked feverishly to complete building the stations. Looks like the MOOR management is now putting their attention towards their shareholders by purchasing the options. Their intentions is to keep the price of MOOR move UPWARD in the near future. Which of any long term shareholders want to see their share price which probably will go up to $3 or $4 or even $5 near term, drops as a result of options being exercised at .50????
Believe me, long term shareholders like me are happy about what has happened. For those shorts, this options exercise comes isnt in their favor. |
