Worth emphasizing about VVID:
1. This stock trades with a large spread--almost always 1/4 point or more. For a $16 stock, that's a spread of about 2%.
2. The stock is illiquid; trading volume is often less than 20,000, and on some days it is even less than 10,000.
3. The recommendations from Lehman, Cowen, and Pacific Growth are not useful; all make a market in the stock, and Cowen brought the company public.
4. A spate of insider selling recently; in September, an officer of the company sold 1/3 of his holdings at about this price. Before that, another officer sold ALL his shares at a price lower than Friday's close.
5. Only about 8 dealers make an active market in this stock. Trading is dominated by ONE dealer, Cowen, who trades over twice as much on a monthly basis as the next most active MM. Pacific Growth, one of the MM's who has recommended the stock in the past, has been withdrawing from the stock recently; in September Pacific Growth traded 225,000 shares, falling to 17,000 for the month of October, then in November only 9600 shares--for the ENTIRE month.
Buyer beware.
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