I will take a shot in the dark....
I have no idea what really happened but it would not surprise me a client of SB told his "young inexperienced broker" get me out! enough of this bleed. The young buck asks at what price, and the client barks AT THE MARKET. (In the back of his mind he knows it is a NYSE listed stock.)
The young buck, following orders and since it is not his money, turns the fat ticket in to his teletype operator with a smile. Comish a coming in his mind..
The ticket hits the floor,.. who is going to take the other side as every tic so far has been 52 week lows. The specialist is in business to FIRST make money. Act first, settle and answer questions later. He takes it $1.00 lower. Hey, nobody prepared him for this trade.
This creates the trade and reported back to smith barnystone, and the broker panics and cancels the order. The order is cancelled but the trade stands as it should, but....the damage has been done to hundreds of other innocent investors which also suffer the equity hit.
But who is at fault, SMU who has not produced a 1c of real profit in years. Is SMU to complain to the Investor who has had enough? Or the Specialist who had been trying to orderly lower the price day by day?
The damage has been made, and it is best for SMU to keep a quiet outward appearance and concentrate on getting the G-16 in-line so to speak.
Just my thoughts. |
