Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (36475)	1/15/2010 11:28:02 AM
From: Paul Senior	Respond to of 78753

I'm suspicious: To my mind, my explanation fits the facts (of the stock dropping). "These guys" all seem in cahoots. The current wide-spread insider trading scandal (Galleon Group and company insiders) reinforces. "A" might not be able to short in anticipation of receiving shares, but friend entity/person "B" with a sub rosa deal to take the stock from "A" at a small profit to "A", might be able to have legally shorted the stock. I don't know what deals are legal, what are binding, what is actually being done. ("A" might have to agree from the underwriters to hold the received stock stock for a minimum time period. If or how that's enforced, I don't know.) Not that these people are the total picture of course. Lots of people will be selling for a number of reasons. Some people won't like that they are being diluted; some will see the stock dropping and decide it's not worth being in; and so on. Here's how it's affected me though: I'm buying more GOV today, but -- presuming the stock will be dropping to $21.50 -- am keeping monies in reserve to see if I can pick up more shares a bit closer to $21.50. Not saying the stock will get there. (Or bottom there: in today's market (DOW off over 100), stock might always fall further.)