Hudson Bay likely dumping in 100 shares increments through a Smart Router where they input an algorithm to try to dump without sending all 25,000 shares into the marketplace. Although the intent is to hide the sell-side demand, investors here should be smart enough to call it for what is - 25,000 shares they paid nothing for - and have nothing to lose by selling it.
Once again, program trading sent the stock below critical levels of $5.00 and $4.00 which induced margined buyers who wanted to ride the upswing (the few that exist, if they exist at all) to sell once they received a margin call. This kind of flushing has no relation to the performance of the company which reitereated to me recently their steady growth and continuing increase in customer demand for their products and services.
They can't buyback until 2012 in September unless the stock goes about $20.00 - which would be rather self defeating. At that point, the remaning 50,000 warrants would be exercised before expiry.
Oustanding share base is 4.1 million, but really about 3.9-4.0 million because of options likely to expire without being exercised. So once again, we have a $14mm dollar market cap with expected sales of around $28 million for the year. 1/2 sales.
We base soon, as the price is loopy cheap. And sanity should prevail.