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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?


To: hotlinktuna who wrote (100516)12/8/2003 1:04:36 PM
From: Mike C2  Read Replies (1) | Respond to of 208838
 
ARTX? trashure(sic) hunting??

I am a recovering falling knife buyer. much more serenity when i miss a few pennies but catch the bounce...like MSSN today.

I remember the CORV adventure...the stock tanked down to the mid 1.teens after announcing they were selling shares...then zoomed in a matter of days to the 2.00 range

ARTX announces a shelf registration which means more shares and more dilution. the share price turns south.

Q. for any and all.
Does the announcement of a shelf offering become a waving flag for institutional money to short shares in the hope that they might take part in future financing at an even greater discount than the then current share price? It's not like a one time financing...they can issue shares over a 2 year? period at their discretion. so why the selling pressure?

Usually there is a perk discount when shares are purchased as an incentive. So, what is going on here?

ARTX a good business in a hot area, but a big cloud hanging over the share price. Is buying at these levels not a complete gamble?

Not trying to cast any judgments here..just hoping to hear from other traders what their impressions are.

As my own example in futility: AUDC
In months long uptrend. very regular gains available trading swings in the short term stochastics. backs off recent highs in last week. gets to technically oversold state last week. shows classic reversal pattern in candlesticks...buy the stock...no bounce.

mike