Here's the full story as I know it. I'm not a pro at this stuff, so double check my logic.
The web page says there are 600,000 shares outstanding. I ran the trades for March 1st through 3rd, and came up with about (I can't find my calculations) 250,000 shares sold at ask and 50,000 shares sold at bid and about 15,000 shares sold in between. The entire time the stock had an ask of $2.
So I started asking a bunch of people to look into it. I found out from them that there are three new market makers in the stock and that one of them is selling tons of stock they don't have. That seems REALLY destructive to me, so I'm not sure I believe it. SO, I emailed STGI and asked how much stock is in the float. The response mentioned that it could be as high as 1.5 million with all of the 144 stock out there. Oddly enough, Yahoo lists 46,500 shares of stock in planned sale as of 3/11/99????
I think the market makers oversold at $2 and planned on dropping the price for the 11th.
Now, If I were the company, I would try to make some significant announcements before the 11th. The last one is a big announcement, It will definitely draw more eyes to STGI. My gut feeling is that the eyes it draws will notice it over time and we will see a continued trend of more buys than sells.
Don't forget that we have Quintiles in on this drug. I'm waiting to see what they plan to do.
The manipulation of this stock is really bad. I wonder if the MMs understand the potential of this company and the risks that they are taking.
Jim |
