Steve: Remember that registering to sell doesn't mean that he'll necessarily exercise that "option" quickly. Cal may merely be serving notice that he intends, at some future point, to sell shares. As for today's action, I've seen nothing to alter my bullish position on VLNC, and am using this weakness to add to my position. As I said earlier, manna from heaven. However, I've given some thought to what's been said here recently regarding the small float, majority of shares being in relatively few hands(ie 800 share holders) and I began to think about what would be most likely to happen should the "big boys" want in. The most logical conclusion would be to have the MM's start driving the Bid down in an attempt to garner as many cheap shares as possible. If this is the case then anyone who has employed a stop loss mechanism is "showing their cards" to the MM's who can see those stop losses. All else being equal, they'll move the bid down and take out those stop losses. Of course, panick could set in, a dream scenario from a MM standpoint, causing folks on margin to sell(or forced to sell) driving more shares out of one set of hands and into the MM's.
Of course, this assumes nothing has changed within the confines of VLNC. If nothing fundamental has changed the one possible way of determining the validity of my above hypothesis is to determine who's sitting on the bid? Can anyone with a level 2 machine answer that question? Also, who are the MM's for VLNC? I know Donalson Jenrette(spelling?) is one, but there must be others. I recommend everyone stay calm, don't panick and use this opportunity to add more, if you've the stress tolerance to gamble.
Meanwhile, for those who may think MM's don't ever do the above, I'm willing to share with you a report I pulled down off the Forbes website some time back that discusses how MM's, etc., do in fact manipulate things to their own ends. It should be required reading for all people who wish to play in the market. Drop me a e-mail if you'd like a copy, I'll be more than happy to oblige!!
Regards!
John~ |
