Besides the obvious reason for a drop In share price due to chip bond down grade I have another theory .The drop was exesessive and a seller Is making every effort to keep the price down.If I were negotiating to buy 10 or 20 million 8150 shares It would mean Nothing to sell 500,000 or a million shares Of Chipmos If It meant getting my 8150 shares for 5,10, or even 15 dollars less then before.Their Is NO risk to them shorting.They end up owning shares to offset shorts or cover for tidy profit.Like Jay said last week I am concerned about what price they place the 8150 shares.The price Of the 8150 shares will tell a lot about whose Interest management has at heart.Cheers.
Your theory is certainly plausible. The management should have thought abut the scenario coming before the sell of 120 million shares and do something ahead to prevent such an ugly bloodshed. The pps could be even lower to $14-$15 before the mid of Aug. I'm very frustrated.
The volume from $19's down to $17.50 was very low volume and the trades were for very small lots. It was mostly retail. But the institutions did stop buying. My guess is that the shares are being shopped around.
You are right about the volume BEFORE Friday and It did noy concern me.Friday was a concerted effort to get the stock as low as possible.Even today the seller tried to push It lower on the close.If It had not been for a $ 16.60 bid for 20,000 shares they would have closed It under that price.The $ 15.00 T.W. Price to the underwriters was a joke and I'm worried they will scew up the price of the 8150 shares as they have every buyback.With all the positive catalyst we do not belong at this price.Cheers