Hi Instock,
I thought I would post over here for this. This is from the Yahoo thread on HCOM. I could give insight into where to look.
Two posts by: scott30303 from the Yahoo board
1) The stock plunged today because the $2 million private placement shares were sold early this morning. If you look at the warrants that were sold, there has to be some confidence on the part of the Money Men to buy warrants redeemable at $15.41... and a lot of them...
Talk to investor relations @ 800-416-8078. I was told that Investor's Business Daily has a story coming out on the company, and that a major brokerage is going to suggest a target of $22 for this company.
In at $9 3/8,
Scott
2) The best that I can determine - and the HCOM investor relations chief agrees - is that today was a triple witching day, and the shorts had to cover. The massive volume would indicate that.I talked twice to Robbins today, and there is a press release coming out on this rout on Tuesday at the latest.
My position is unchanged: I firmly believe that this was the work of one or two funds. I think the 100,000 or so shares that went at the ask or better just before the bell today indicate that there will be a big uptick on Tuesday.
Reassure yourself: look at their clients and look at the warrants that have been sold. I think HCOM might have gotten thrashed the same way KRSL did shortly after their 4:1 split; the situation there was identical. Those shorting the stock butchered it, and the day after KRSL lost 30% she had regained (I think, anyway) 20%, and then was back close to her old high within three or four days.
Yes, I did feel like I was going to puke today, but I didn't pull the trigger. I was in at 9 3/8. This wildcat investing is not for the faint of heart, but HCOM - I believe - will be OK even in the short run.
I will have to look at this private placement. I saw it, but didn't look it over. This might give us a key. TTYL.
Eric |
