Par:
The drop in the stock is due to a combination of the negative editorials written by MSNBC & Bloomberg, short selling in massive amounts, which begat panic selling by individual investors.
All of the stuff written about BHUB and its management surrounds:
1. A potential private stock offering that has not taken place.
2. The character of a management team who just happened to build up their last company to be worth $220 million and make big profits for shareholders.
3. The fact that a large chunk of shopping.com sales at one point came from their underwriter - a fact which was largely ignored by Compaq as they saw the real value of the company and offered to pay $220 million as a result.
4. Innuendo about who was really going to buy the private offering of stock that hasn't yet taken place.
5. The fact that the company isn't yet a fully reporting entity - something which is not exactly new news.
Par, these bulletin boards are just the tip of the iceberg. And the goal of the shorts is to induce panic selling so they can help drive down the price. Remember, this business is really all about upside, uptick buying and the opposite on the downside. Everyone loves to buy on upticks. And lots of people panic at the first sign of a downturn. In today's market, one week is a long term hold for most Internet investors. And the more people the shorts can scare off, the more likely it begats more and more selling.
My advice is to look at the big picture. Look at the timing of the news articles, the timing of certain negative posts here and other places where small stocks such as this generally find their biggest support bases and venues to exchange information. Then compare all of that with the actual facts - what has been said by the company, what has actually transpired in terms of transactions, etc. Then you tell me what you think.
You're right. Something is not right with BHUB, but it begins not with the company, but with the stock market, the news organizations and the lies and innuendo that has been spread. By the way, how come these pundits never once commented about BHUB's negative factors while the stock was moving up from $10 to a high of $17, even though they supposedly knew about the financing deal which had been "circulated" for almost a month, and about the past history of the new management team, who they knew were coming on board. Why did they wait until the stock petered out from its high, and was actually drifting down already? Why? |
