Ralph, this approach of blasting a small float stock a few weeks before earnings is not new.It is probably becoming a classic by now. I may be wrong ( and time will tell). However what a GOOD MM classically will do is drop the stock rather precipitously from 36 down to low 20s at the earnings announcement, the old sell on the news.Then keep it there for ~ 1 - 1 1/2 months , thus giving small investors a false sense of security that a floor has been reached and allow them to pile in. Then on a nice sunny day, ( GG, today, when market is up big time ),to further despair the hopefull for a profit new investors, dump shares to a friendly
( should I say conspiring? <GG> ) MM at lower prices . This is a particularly good ploy especially very near the earnings when people think that all danger is past. So more people get shaken out.
If you look at TDFX's chart, it has now formed a nice double bottom with today's fall to ~17:
techstocks.com
The good thing about this is that it occurred over at least 6 weeks so we are sure that all the weak hands and margined folks are out. We'll soon start seeing a rise that will take us past 27 unto 40 by Xmas. All IMHO,
TA
Again, for what it's worth, I am going strictly on my 17 year old's opinion on all this: an avid gamer who has reviewed all the competition out there ( stores and the web ). He does not post often, too busy, ( just took his ACT/SATs and so maybe he will post now that he is out of school ).
He hasn't sold his position ( got in at 18 and rode it all the way to 36 and down to today without selling. He is long term and very comfortable with it.
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