Dave: < GMTC > As with any stock taking a One day 48% HIT, there are good reasons for the drop. Sometimes the HIT a stock takes, either up or down, is larger then what is called for. Panic selling or Panic Buying.
New Thread: < GMTC >
exchange2000.com
Investors Friday, and all week long for that matter, have been looking for any reason they can find to sell what they own or short a stock. Fridays huge wholesale dumping of MANY good stocks was an example of this panic selling.
Fridays Press Release had a Good side and a Bad side.
GMTC was hit with Panic Selling because of the announced delay in Product development. <Bad News.>
Everyone was in the mood to jump on any bad news they could find.
What many failed to understand in GMTC Press release was that the Core business is doing fine! Record Earnings, Excellent growth! <Good News!>
I believe that after a 48% drop in price, investors will be looking more at the Good Part of the Press Release having already nailed the bad part pretty well on friday.
I also beleive that there was some Short Term Short Selling going on Friday as well as in the past week or so. With the general market conditions so BAD Friday, there was little reason for the Shorts to Cover ( BUY ).
Monday could very well be a differant story.
The Shorts might feel it is time to cover ( Buy )
If the stock starts rebounding, the shorts will jump in and start covering their position by buying GMTC.
If the US Markets stage a rebound of any kind ( which I think could be very likely ) this will further add to the buying on the rebound.
At this point, GMTC cannot be short sold. Has to close the day before at or above 5 1/4 at most brokerages. The stock can be Bought Long on Margin though.
To sum it up, if GMTC stages any kind of rebound, the shorts will start covering ( buying) and add to the price increase. The stock cannot be shorted at this point, so that is one group of sellers out of the market. If the US Markets stage a rebound of any kind, this will add to the buying preasure.
Thats my IMO in a nut shell.
If this works as I think it will, this could be a very nice Short Term gainer as well as a even better longer term gainer.
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