Interesting perspective from Yahoo. No, I don't know if the poster is really Andrew Tobias, but the poster, whomever they are, seems informed and the explanation makes a lot of sense to me.
<<Wait for the pullback to under 5 if you to buy.
by: ATobias 8242 of 8245
There's alot of misinformation here about todays run up of TAVA. First of all, when it was mentioned on cnbc, it was at 5 1/8 x 3/16. A popular daytraders chat room hopped on and ran it up. If you have L2 quotes and watched it today, you would have seen juicing of the bid 1 and 2 tiers under best (market)using the ecn TNTO(arca). Novice traders don't realize what's going on and think there's great demand for the stock when they see the huge size, so they pile on, running it up even more. After the mention on cnbc, TAVA promptly ran to near 6 and then started to fall off like most cnbc mentions do. This is where a group of well funded daytraders came in and started juicing the bid at 3/4 to 13/16. Like I said before, this is where the novices get faked out and they piled on running TAVA up to 6 1/4. The group was unloading their long position from 6 - 6 1/4. All the supply they were dumping caused TAVA to fall back again to the 3/4 area. Once again the bid was juiced in the same manner pushing TAVA up over 6, although this time, they weren't unloading their shares, they were unloading borrowed shares(shorting. Even a few of the market makers joined in and built up short positions with the demand that was flowing in. If you look at time and sales, it's evident that there was mostly small trades going off, 100-500 shares except when the bid was being juiced. Lots of unknowing traders and investors got sucked into this runup. You can expect TAVA to fade back to right where it started, or even lower since many people were caught up and now will be eager to get out Monday morning when they see there's no demand and the market makers and the daytraders group start running it down(using the same technique, only in reverse) This scenario is played out every day on one stock or another. All I'm saying is that if you are a TAVA follower or investor, don't get sucked up in this scheme. By Tuesday, TAVA will be back to normal and like trade near or under $5. If you've made the decision to invest in it, you'll be glad you waited til the gameplayers have moved on. I follow TAVA and plan to take a large position in a few weeks in the low 4's. I know of a fund that still has lots of TAVA shares to unload in the market and although they likely got rid of alot today, it was probably just a dent in their holding. They and I'm sure quite a few investors will be using TAVA as a tax loss writeoff this year. Come January, things oughta look alot brighter once the pressure is off. One more thing, I'm curious as heck to know if TAVA was intentionly pumped on cnbc so it could be unloaded. I am looking into whether there was a connection between the fund that needs out and the one on cnbc today. If so, people who bought on this run are getting it from both ends.>>
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