OK, Taking all of your comments to heart about the tone of my posts, I will be more cordial. Understand though, when someone appears on a BB you have have followed for years screaming "Fraud" and accusing everyone of being paid shills, it doesn't make me want to respond with kindness. As to the price of VLNC shares in the last week, Volatile is the only word I have to describe it. Three points worth considering:
1) The Wexler "Fraud" accusations and short recommendation were initiated in the $7 range which is where the stock remains.
2) The stock has since swung the range from $5 3/4 to $8.
3) Yesterdays "high volume" that Baker refers too is not quite accurate. The volume was below the average daily trading volume. and the last minute price action did not reflect the day's trading. The stock was stable in the mid $7's (100k shares traded range) until about 45 minutes left in the trading day. The price decline from there was done with about 30k shares, many of which were buys. Maybe 20k of sells and 10k of buys.
What you saw was called "whacking the bid". I've used this trick myself. Here's how it works. At the end of the day on Friday when investors and some MM's have either left early or are mentally elsewhere, sell shares at market at the bid size to take out the MM's offers one at a time. Assuming there are no buyers paying attention (remember, end of day Friday!) the price will drop like a rock since the MM's will happily pay you very little for your shares as long as you are willing to keep selling at market. The motive for doing this is to scare other investors into selling into the slide. Many who see the close may also panic and sell in the a.m. on Monday. This only works, of course, when no one takes the time to read the tape, figures out what was done, and publicly disclose this action. It also only creates a short term supply imbalance, before the stock's fundamentals take over. I suspect the perpetrators are reading this post, as are many others who were alarmed by the rapid drop. I would like to congratulate the VLNC shorts, you are hitting all the bases to alarm investors into selling. I'd be nervous too with 1.4M shares short! Just one problem, VLNC is not a short candidate and too many people with money know it. The frustration of being short VLNC is about to turn from frustration to pain. We are just days or weeks from a major upward move in VLNC's share price, and there is not much time left to cover. Look at it this way, if 1.4M shares can't knock the price down, how much money do you guys have left? |
