To all: I hope you don't mind me jumping from Yahoo to SI. I even left my own thread of "Sparky's Corner". My take is this. Wall street loves a co. that 1. has strong sequential earnings 2. surprises the street. They truly love beating the street by 125%. So, what's the problem? The damn offering. That's the problem. Yes, we are having big time profit taking...why? because of the damn offering. I disagree that a fund is getting out. I think it is the damn offering. I watch Level II all day. I have been watching huge blocks going by on the buy side; the mm's are taking all the sells and filling large orders. Today I noticed the bid finally getting strong when we got to $15. As if the whole world was watching this thing and when it got to $15 they called their banks. I started pushing the button at $15 and only got $15 3/4. I am tired of hearing this crap about the 50 dma, or this and that. It is the damn offering. YOu may recall BARR almost two years ago. I had 50K shares I had bought leading up to earnings. A close contact with the CFO had me convinced they had a strong Q. They announced blow out earnings. However, they chose to make one more announcement. They were selling 4 mill shares. The stock showed a 2pt gap up pre-opening. When the news was posted....and only PR wire had the news just prior to open,, the stock went from $15.50 to $13.50 and 1 1/2 yrs later the stock is at $8. Why, the damn offering. They finally postponed the offering and we got a shorterm 1pt bounce. But the offering loomed over the stock like a dark cloud. Investors will just not play when uncertainty surrounds a stock. You savy ones out there know that. The mm' also know that and will trade the crap out of this issue. Today they swept, washedout, cleaned the tank, or whatever you want to call it. The reason I only got 3/4 is becuase these whores took all the shares. Forgive me, the fundementals of the co. are outstanding, the technical picture just improved today with the washout. The vol. was great. The chart shows signs of a nice hammer. Now what? The damn offering looms like a very dark cloud. I agree, the offering size is not monumental. The debit is reduced, and expectations are noteable. But for the shorterm, we will have at the very least, the mm's trading this stock for all it's worth. My advice is to stay the course, keep some powder dry and buy on dips. RDRT got cleaned as well today. SEG was the only winner. Sorry for the length. Need a good nites sleep and wanted to empty my chest. I was especially glad to see the market close on the high. Futures are up at this writing.
Sparky.........it's the damn offering. <G> |
