I'm on board..Thanks!!
Recently the Norwegians have been on a buying spree of GTAT shares. In a filing on 2/5/13, DNB Asset Management based in Oslo disclosed that it added 1.7M shares to an already large position bringing its total holding in GTAT to over 7M shares, or almost 6% of the company. Norges Bank Investment Management ($650B AUM) as of the latest filing on 9/26/2012 has 6.2M shares, a 5.22% stake. 11% of GTAT's shares are held by a large Norwegian financial institution and the largest pension fund in the world.
Why bring this up?
I think all of us can get lost in the day to day gyrations of the stock and the market as a whole. In all, 87% of GTAT's shares are being held by very large institutions who aren't going to divest their stake in the company at $3 per share. This leaves 15M or so shares being traded back and forth amongst day traders and smaller institutions. The funny thing is - there are 36M shares short. With only 15M shares around, any surprise in earnings next week is surely to provide a short squeeze.
It might be the kind of surprise that isn't so good.
Although I do like that the price has been stable today in a bad market.
RBCN getting crushed today as Piper downgraded them with a price target of $4 while the stock closed yesterday in the $6.30's. I only saw a snippet on the downgrade in which the analyst noted competition and possibly no profitability until 2014.
RBCN is trading at less than 60% of tangible book value so maybe at some point that becomes a buyout target for someone.