I am afraid this time the rumor is not a rumor, but pure fact. Why ?
As you know the Cal Tech news letter released the buy out speculation on Wednesday, while the trading on Thursday did not response to the buy out speculation , and the stock actually went down on Thursday. on Friday, COMS just went through a regular trading till 10 AM , when the volume and price suddenly surge huge. If Friday's surge was purely based on the buy out speculation, then why it did not happen on Thursday, or at the open of Friday ? Someone got the
buy out news confirmed at 10 AM of Friday, and the action started. So, at this point ,
the buyout is already a done deal, and just wait to be announced.
Secondly, as you know the institutions will not hold the stock through the weekend if they are not 100% sure the buyout is a done deal, because , the stock price will generally pull back big the next Monday if the rumor did not turn out to be a fact, so, if this buy out news is not confirmed , the institutions will sell off the stock at the end of Friday, and the price will drop big at the end of the day, but that did not happen either.
Thirdly, the trading volume is 34 MM shares , which is 300% of the average volume, and it indicated that something has happened, and it is not just a rumor.
Finally, I am sorry to say that the shorts will lose their pants this time , and it will probably happen next week. Blood is on the street for shorts, and once the price start to surge, the loss is unlimited, and no chance to cover at all !!!!! |
