I noticed that there are many weak hands among AMRI traders. Few days ago, when the stock was racing between $11 and $12, I was able to buy at below $10.5. Someone with a good number of shares was placing a market order, selling out of random fear.
And then AMRI was up 20% in a matter of 2 days, and today it went down 20% when earnings are up over 100%. I assume the same thing happened today - people got scared out of no reason. All it takes is 1 or few market makers who prime the sell-off, and a million shares followed within an hour. I don't often see a stock with such decent volume + earnings trade at such volatility. But it sure is a huge $ making for those with STRONG mentality.
I think it was out of no reason, and that's how market makers make their profit.
Here's how you tell: Huge volatility without catalyst is a sign many weak hands trading it. If "there's something people know", hedge funds would know it first, and you'd see more consistent price pattern - as if price is fixed.
Like I said, few days ago, when the whole market was trading between $11 and $12, somehow I got my buy order executed at below $10.5 (!) That moment I knew someone is both weak and has $ to lose.
Racing the stock to $12.2 was pretty irrational. Selling off on a good morning when earnings are up over 100% was irrational too.
Well, the game is over. My guess is price will be dead for a few months, while hedge funds quietly buy up. Currently AMRI is only 52% institutional owned, so we'll see a lot more buying. We should come back to join the run up before the next earning release :)