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Biotech / Medical : SNRS- Sunrise Technologies -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (4001)	8/10/2000 12:09:01 AM
From: Bruce L	Read Replies (1) \| Respond to of 4140

RE: What Are We To Make Of Today's Disappointing Market Action? As happens not infrequently with me, I was surprised (this puts it mildly) with the price action of Sunrise today. We closed at 7 11/32 on 3,305,000 shares traded. And there were many trades near and after the close that were lower still. VERY, VERY BAD. My SOP when I have made a major investment in a stock and it performs badly, is to go back over Time and Sales to see if I can pick out any clues. And that is what I have done. Because as Paul points out in the prior post, all of the news was positive. The company will sell more than 100 machines by years end, sales at more than one per day, margins in the area of 90% etc. First, the PR release of earnings (loss of .25 vs .10 expected) did hurt. This came out at 10:35AM EST. In the preceding 1 hour of trading the stock traded at all times above 8 5/8. Volume between 10:15 and 10:30 was only 34,000; between 10:30 and 10:45 it was 97,000 shares starting at 8 13/16, trading as high as 8 15/16 and finishing this period at 8 3/16. In the next 15 minutes, volume was 106,000 finishing at 8 5/16 - just as the CC was beginning at 11:00. Surprisingly perhaps, reaction to the CC was muted. Volume tapered off and the stock traded between 8 5/16 and 7 3/4 until 12:00. In the 15 minutes beginning at 12:00, volume spiked sharply to 262,000 with the stock moving to 8 3/16 from 7 3/4. Volume fell off for the next half hour. Then at 1:00PM volume kicked up sharply for the next 15 minutes to 192,000 shares, moving from 8 1/32 to 8 3/8. From 1:15 to 1:30 PM was the heaviest trading of the day: 346,000 shares. The stock in this 15 minutes traded as high as 8 1/2 but price movement was generally down finishing at 8 1/32 but trading as low as 7 3/4. From 1:30 to 1:45 volume was heavy at 215,000 but the trading-mostly - was within a narrow 1/8 range. Thereafter, volume - and block trades - fell off sharply. In fact, the largest trade in the last 2 hours was 7000 shares at 7 1/2, the ask and another of 6300 shares at 7 29/32 at 2:17PM. In the last 1/2 hour - when we dropped from 7 5/8 to a low of 7 3/32, the trades were all small and retail. The last "block" trades were of 16,500 and 11,200 shares at 1:45 and 1:37PM respectively, one at the bid and one at the ask. Perhaps surprisingly, "money flow" for Sunrise today was positive, with more money going in than out. HYPOTHESIS Trading today was consistent with institutional investors taking time out to analyze the data presented by Sunrise management. They definitely did NOT abandon the company. Not yet anyway. Small retail investors and daytraders to some degree did panic when the stock didn't follow through as they expected. When it started to drop, they DID dump their shares. Tomorrow is another day, and IF the data really is positive as I think it is, and IF the institutions agree, we COULD have a nice reversal. Bruce