SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: P.T.Burnem who wrote (26245)9/2/1998 5:14:00 PM
From: Brad Bolen  Read Replies (1) of 94695
 
Guys and Gals,

Any of you small cappers out there notice that the market is trying to tell us that some of these babies are not going to make it? At least, that is what I think the market wants us to think...

I have noticed a pattern with some of these little guys...often in the last couple a weeks once some stocks got low enough (usually around 5 or so) they suddenly tanked, even in the face of buybacks etc. Only then, they rebounded hard to the level they were at the final break, sometimes only a hour or so later.

I pointed out an example to you last week. VTEL (that dog) was at 4.5 and suddenly tanked on low volume to 2.7/8. I posted and an hour later it was back to 4. I now figure this is a MARGIN WASH. Some poor folks are having to dump their small stuff to get out of margin trouble. I saw it happen firsthand yesterday with a guy at my brokers office. He had received a margin call of 100 grand (not on VTEL) and the stock was at 4. He has been trying to liquidate slowly to cover without them noticing--1000 here 2000 there--but the stock tanked to 2 something anyway.

It happened to one of my stocks at the end of the day today. I know for a fact that the company has bought 25% of a 2 mil buyback in the last week, but it went from 4 to 2.75 on relatively low volume in the final 10 minutes.

These are either the buys of the century, or they are all doomed.

Thoughts?

B.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News