My simple take on this stock is that it is held by only about 2500 shareholders. There is not sustained volume when it climbs and it runs out of steam, at that point which is reasonably easy to see the shorts take over and it gaps down. Then those with a profit, panic, sell, and drive it down farther. When the selling dries up it recovers with shorts covering and just a little buying along the upward path. If it wasn't for shorts creating artificial selling volume it would stay stable on its upward journey interrupted by profit taking. It is a part of our stock market no matter how distastful it may seem to sell a stock you don't own to harm the value of the stock. It's also ironic that the actual owner of the stock probably doesn't want the stock sold short against his long position. It basically sucks and distorts the capital market, however if others didn't panic sell on the command of the shorts it wouldn't drop far and the shorts game would be over. Panic selling is the short traders best friend, they just have to get you to respond in a knee jerk way. It's not going to change anytime soon. If your an investor take advantage of the crazy dips and buy your position at a right price. Shorts know when to sell to distort the chart on this thinly traded stock. It will become less easy to manipulate as time goes by.
I'm here bought more at $6.30. With the rebound only one block of 50,000 sold at $6.60. Looking at my charts from the ancient history museum (last week). Keeping a core position because this company is fundamently sound and executing their business plan and their expanding without taking on much debt. Can't ask for more from a growth situation and the financial numbers look great. The trading numbers and gamesmanship will be a part of this small float company as it moves higher and higher. When the financial numbers become attractive (May announcement and beyond) more institutions will be buyers perhaps when the shelf stock is offered. The company is pursuing expansion without much dilution. What they buy with their stock is worth the money and becomes a productive asset after they convert the production facility into a multifeedstock user. Great business model for this industry. In two years time this company is going to have extraordinary profits and $7.00 will have become $21.00.
I am holding it for a few years for a decent return too. $21 would be 300% return, that's similar to my target $20. Hope you are right!
I was afraid to add more when it went down $6 since I am not familiar enough with this company yet.
But if this stock receives blender credits for 2012 and 2013 and breaks $10, I might add more later.
For now, I have only 1/4 position on it.