Everything this company is all about depend on the successful testing of the 50 units currently at dell(or whoever). They have been there for three weeks now and management should be keeping SH updated on the status of this testing. Most of the drop today was probably based on fear that testing wasn't going well. A simple PR every other week during this most important phase would prevent days like this. JMO
How often do you see companies provide constant updates on testing of their products with their partners? Usually there are announcements for commencement, completion and maybe a milestone in between depending upon the duration of the testing period. This is not uncommon to not hear anything for several weeks.
i think you hit the nail on the head. I believe there are numerous NERVOUS investors that do not want to lose their profits, and are nervous about this testing. Today may have been a stampede triggered by some initial selling and fueled by psychology. The high short interest also makes some think the shorts know "something"... add it all together (along with more short selling and HFT bots) and you get an unexplained 25% down day... Cowen and their recent institutional investors must not be happy. They work hard on their relationships, and today's action made them look bad. This may kick some of the big longs into some action here... they have sure been quiet thus far
There has been sufficient vetting of the product prior to testing to know that even if issues come up during testing that they are completely fixable. Sure there may be a potential minor delay here and there - but Dell isn't going to drop the product at this point because of minor glitches.
I really can't believe the amount of doubt some long time holders are showing.. it was barely over a month ago the shorts managed to crash it to $22.. not much longer we would have been happy to be at $27..
I think they pulled out the stops today because they know next week it well may be game over for them with the dispaly conference.. great last minute save for a lot of them.. too bad..
Let's see where we are at by the end of next week..