Yeah, Scott, I saw that. Here's a link that should bring it up for others: dljdirect.com
<<ErgoBilt, Inc. (Nasdaq: ERGB) today announced a brokerage firm sold this morning 310,000 ERGB shares to close out ErgoBilt Chairman Gerald McMillan's margin position at the brokerage firm.>>
But I don't get this explanation, eggzactely.
Here's why.
If it was a forced sell due to a margin call,then why did it trade like it did? Specifically, remember that it opened at 13 1/4. If this was simply a sell why did it take all orders out to a price of $4 3/4?
I'm not being cute here, I really don't understand how these things work- it seems to me that such a flood on the market should have depressed the price, not inflated it on the transaction. Look, I understand that pulling the shares out of a sizable margin account would have forced those shorts who borrowed the shares to cover (provided they couldn't get replacements elsewhere, so to speak), but the covering looks to have happened after the "sale" if at all- again, if you look at a chart it looks like the 310K trade itself was responsible for pumping the price.
Anyone help me out here? If I'm not being clear, let me know folks ad I'll try and say things again.
Anaxagoras |
