90,022,400 shares traded (the entire OS) at an average closing price of 0.367 over 43 calendar days. Only 1.6M shares out 17.8M shares covered over this period. Bounces to low 40s on relatively large volume and trickles back to the base on low volume. I have never seen such a tight range for this long a period on any other stock that has fallen 66% on a single day! Quite an achivement by the MMs. I wonder if there is more to this than meets the eye. I don't usually subscribe to buyout rumors or probabilities but this is all too freaky strange...
Many have sold - charters disallow sub - $5/sh positions. Some that hold are indexes - they have to hold everything, including this dog. Some are stuck, and besides, at this sh price level, it's a negligible trade amounting to relative pennies.
You need a 13-d filer who can shake this up. But like I said earlier, there's no deep value asset base to attract one.
This trading range could go on for years. 30 WEEKS at this base could happen just as easily.
See Loeb's deep value long BVEW - traded for years at .70 +/- with irregular spurts up and down 2001 - 2004. Finally sold to SYMC for $4. But BVEW had $60mm hard cash on the balance sheet - about $2.00/sh, creating the needed floor for a true deep value long play. You don't have that here.
The only reason I don't see a buyout scenario down here is neither Ross nor Alex will sell the company for under $250M IMO. That was the market cap when Ross joined in Jan and he prides himself in being a turnaround expert. Alex owns over 4M shares in the $6-7 range. No stock options were granted down here per SEC filings. So, they need the stock to rise quite a bit to make some money, let alone break even. If VELT suddenly drafts a poison pill plan, then a hostile takeover by a private group that is buying boatloads down here is quite plausible and imminent.