You are right about the retail buying. With only 2,000,000 shares in the public float and a large percentage of these held by employees of LCG (IR told me this), this stock is very tight. A lot of market price buying.
I have been following this stock close since it's start on September 10, 1998. It has traded, so far, about 1,300,000 shares at an average price of $3.00. The running average is continually climbing since we are having high volumes at the $3.50 level. The high volumes over the past two days (+150,000 shares) are coming with a high number of trade executions (220 to 240). Looking at who is buying and selling, it seems that a large number of people are buying with fewer sellers. So, I think that we have a large number of people holding a small amount of shares. This is fantastic because in this situation I think these people are in for a minimum of a $1 plus appreciation before they get excited.
What are your thoughts?
I am not sure about institutional buying. I see that McDermid, part of the IPO at $1.50, has been active buying and selling. |
