Could the sellers be the participants in the $40M offering who bought the stock at $3.00 cashing in to hedge their positions if SFP results are not favorable? Is it also possible that info on SFP results have leaked out (insider info) and is not good and sellers have moved in? Time will tell......
Like all moves like this none of us will know the real reasons, but one could guess.
your explanation could be part of it. You put out three when the stock is 4 and it starts going down -- sell 350 to 360 and make 16-18%.
the russell rebalancing also comes into play. Note timing. Late on jun 21 the proposed list comes out. On jun 24th a final list comes out for the execution of the rebalancing occuring after the close on the 28th. Your index owns an excess of the stock according to the calculation of the new index so you short the excess stock with the idea of delivering the stock after the 28th. Hopefully you make a profit on the short but who knows.
then there are the shorts piling on as the price drops knowing there probabably wont be any significant news this week so they hope it keeps going down and they will close friday (i expect an upday on friday due to this)
finally there are the weak hads -- cluesless souls who see it going down and just sell.
if the three events coming up are positve this will be 10-12. Only an idiiot wont get in here.
Guys did you check out the short report? 800,000 more shares short since the last report in just 2 weeks! My guess is in the 8 trading days since the report they probably shorted another 800,000 shares at least to make the stock drop this much. The stock is not going down because of an abundance of selleres it is an abundance of shorting