Piranha, interesting question, what closed the gap...
Don't really know, but, one could now argue that the market
perceives the merger to be a done deal. All of us that bought
stbi hypothetically gained as the gap closed. But,
I had mixed feelings about posting that people buy stbi instead
of 3dfx, as that in theory lessens the demand on 3dfx and the
price falls... aka the acquirer's stock price falls and the
acquiree gains. Felt like this was hurting the 3dfx stock price,
combine with people tax loss selling/converting 3dfx to stbi...
which is really what you want to go up if you buy stbi. But it
was imo the best advise for people wanting to go long.
I'll raise your question one further, in that my guess is this
is a temporary gap closure and the gap will widen out from
here until the volume ratio becomes/stays skewed to 3dfx, which could
happen soon? Comments? And, that a necessary (not sufficient)
condition for 3dfx to move up was the gap to close one time.
<< At only 2.5% discount to the merger price, I see no reason to buy STBI vs TDFX. >>
So short term
this looks a 'bit' bullish to me with the gap widening back up as 3dfx creeps up. But am also confused on where it came from: run up to earnings? earnings announcement someone knows about already? Isn't it too early for this to be a 'done deal'. Would appreciate any opinions to keep me from going crazy waiting the next 7 days. This stock has digested a lot, it's a new ballgame predicting
short term price movement from here.
<< If we had closed above 14, then I'd say we are in a trading range to an up trend >>
But, yeah, we didn't close above 14.
Jason, consider your presence on the board very positive, welcome! |
