Hi David!
This is just one more personal opinion from someone who relies on more reliable information like the new new Digital
VocalTec agreement. The only explanation of what is happening that makes sense to me is that a lot of sharp traders are
making a fast buck. This has nothing at all to do with the real value of the stock. Witness the fact that 345,000 shares were
traded. The low was 13.625. The high was 15.375. This amounts to a spread of 1.74, or 1 3/4.
Also note that the trading range each day is about the same. Let's assume that half of the 345,000 shares were sold by
those who panicked, and that the other half were bought by sharp, experienced traders who wanted to make a fast buck. Half of 345,000 is 172,500 shares times the spread of 1.75 = $301,875, not a bad days work with comparatively little risk,if you know what you are doing. My figures may be way off, but I think traders had a field day today, and will keep on doing so as long as they can buy VocalTec at depressed prices from those who have lost confidence in the stock. For whatever
it's worth, this is the only logical explantion that makes any sense to me.
Kindest regards,
Don |
