Satish,
I believe that there were 2 funds that took advantage of Matria's excellent earnings report to adjust their portfolios for different reasons, and neither of them had anything to do with Matria's fundamentals.
Foreign Colonial Management had a manager leave to start his own fund, and hopefully he will be buying back the shares that FCM sold because of his departure. FCM had 1,954,000 shares, and sold 739,000 shares leaving them with 1,214,700 shares.
The other fund that sold decided to switch from a stock fund to an index fund, and sold their non-index related positions, Matria included.
The market absorbed a tremendous sudden supply extremely well. We now have a very powerful base in the low 5s, and the downside risk is very low because of the ridiculously low P/E. If it weren't for the selling in these 2 funds, Matria would have been in at least the 6s' instead of the low 5s.
Matria is currently getting their story out to various houses on the street. They presented to Smith Barney, UBS, and will be presenting to Cruttenden Roth. As soon as the various catalysts start to kick in, we should start to see some nice price appreciation in Matria's stock.
GM |
