What is anybody's take on the trading activity?
Here's my view on recent activity including Friday's (and other related ramblings....)
A few occasional big money investors are staking $15,000 to $50,000 on what they (and me) hope will make them rich.
On my E*Trade Account the best bid all week has been 9/16, down from 5/8 the prior week.
If most of the sales were just dumping the share price would continue moving lower, which it really hasn't given lack of news. Also, I've noted that there isn't much insider or Rule 144 trading, check the link at biz.yahoo.com. Note that, any insider who files a Form 144, must then immediately file a Form 4 if and when the sale is completed. Thus, no actual insider sales have yet occurred. Based upon my review of the financials, none of the executives is making any decent salary, so the limited registration that you see is excusable IMHO, as some people need money to live, send kids to school, etc. Overall insider non-activity is a sign of conviction in what they are doing.
Let's look at the chart from Friday, which I hope comes through.
quote.fool.com
We had what looks like 2 major trades during the day. One purchase and one sell. One weak investor bailed on 30,000 at a limit order of 5/8. The MM must have wanted the shares, since they scooped it up at 5/8, while the bid has been 9/16 all week. A market sale would have yielded the lower figure, so I'm guessing that somebody who recently bought in at 11/16 got out for a small loss. (I hope that within a few weeks they will feel very remorseful about their decision.)
Now, here is the good news. A bigger stronger investor bought 80,000 shares at a limit order of 43/64. I'd have liked to see it been for 11/16 or higher, but look at the trend! It looks to me that somebody just parted with about $54,000 to buy BPON! This is a sign that some big savvy investors are buying in before this takes off. Check the activity earlier in the week. I think that on Thursday we had somebody buy even more when the stock closed up at 23/32.
Overall, my take is that this week we had very few sellers, for those that own do believe that this company will be a winner. At the same time we lost a weak shareholder or two, and exchanged them for a bigger stronger versions!
Additonal thoughts regarding insider trading, or lack thereof:
Some insiders and non-insider Rule 144 shareholders have registered to sell the stock. From what I was told when I asked the company, the predecessor company that developed the MR3 technology had several employees that walked with a few hundred thousand shares each. One of them has registered to sell 180,000 shares. Is this a concern? Not really. They aren't insiders, probably know only a little more than we do, and more importantly may not have actually sold anything yet. Again, see biz.yahoo.com (hopefully up to date.)
On a related note; I encouraged my sister to buy this stock, but her broker talked her out of it. (IMHO he's protecting his turf, wanting her not to defect to a discount broker.) He sighted insider trading to me as one of the reasons not to buy. Obviously, this isn't the case, so for anyone interested, (including you Janis!) Please make your own decisions. The management (IMHO) of this company has conviction and integrity, is working like mad to get things going, and won't be selling until they get fair value…
….based upon their projections in my opinion we won't see fair value until this stock sells for at least $10 per share.
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