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Microcap & Penny Stocks : ABTX - Agribiotech

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To: R Hamilton who wrote (7102)1/22/1999 8:04:00 PM
From: Edward Hardaway  Read Replies (1) of 8359
 
Someone or something is at the table with extremely large treasury. They are covering the stock at 12.

Hypotheses #1: Nervous sellers being taken out at 12. Price firm because buyer wants to buy large volume and is not price sensitive. (rather buy a lot NOW rather then dicker over price, ending up with fewer but cheaper shares) Good plan if expecting large quick price gain.

#2: Bunch of small buyers buying into large seller. reverse of above . Large seller more interested in liquidating large volume then in maximizing price by waiting for buy pressure to increase price. Good plan if you expect large price drop.

#3: 2 Mutual funds buy/sell programs at cross purposes. (one big seller, one big buyer) or 2 funds change their strategy; 1 deciding to go long(er, ("Jill, we have to have much more of this stock by the close of business TODAY!")) the other deciding they have to much concentration in one volitile stock ("James, I want that stock below 5% of total portfolio before the close TODAY!")
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