The operator creates volume by trading back and forth and sucks in day traders and momentum players so the insiders can unload before the split and next dilution...and the company has "legally" used such share distributors in the past (see old filings). Of course, "transformative" news might explain strength...time will tell where wisdom lies.
as of 7/31/13 there were nearly 3 million shares short...until the NASDAQ notice that listing was safe there were more than 600,000 shares bid over $1 to support the listing. Once the company was safe, the bids disappeared and the stock tanked. The short interest knew the 10Q would be dismal and they would be able to cover much lower or not at all.
So expect it to go back to test 70 cents and if it breaks to test 50 cents.
The need really good news and sales would help.
Sentiment: Strong Sell
Setting up for year end tax selling, a play might be to load up under 50 cents for a PR blitz in early 2014 coming after the players have loaded up. I am guessing that the recent secondary was cash to play trading games rather than an investment in long term growth.
Not sure what Lee will come up with but expect something like he is talking to Beijing about covering the Great Wall with panels.
The 600,000 at $1.03 was largely withdrawn...a little lack of conviction or an operation? Now if that was short covering that is gone, one might expect the shorts expect to cover at a lower price...meanign it may break a buck...odd ending...
Withdrawal of registration statement and private placement to follow...things that make you scratch your head if you haven't already. Based on the price action the last few days one would hope a better deal around $1.03 but who the heck can figure this operation out?
The 200,000 share bid reappeared so someone is defending a buck...it appears they will not reverse which is good. They have about $2 M cash unless the preferred and warrants are being consummated.
They did a 57 cent sale for 2 1/2 million dollars when the stock was probably in the 70s and Honig got millions of shares at $1.20 when the stock was probably in high $1.20s so.....
They won't announce a secondary before getting noticed by Nasdaq that they do not have to reverse but at this rate I'd guess somebody, likely in China, maybe Palm Beach, will get a couple of million shares in the $0.80s and lock it in with a short sale.
Lee is rolling the dice on sales but a chapter 11 and Chinese technology transfer remains a real risk.
Let's see if the August quarterly report suggests a Zagg like survival. But who knows, maybe there is a mega deal in the works that will surprise the bears.
Sentiment: Strong Sell
It's unwise to go against institutional money flow. ASTI just went through a nice testing process of $1 ..and .today surged on news of the Global Solar buyout. When things get bullish enough, a company can do an under-the-market offering, then the institutions will let the stock drop for a day or two to suck in amateur shorts, then they push the stock much higher and the shorts get annihilated. You can say all you want about the little here-and-there deals being fluff, but the market doesn't care what you think, and in fact those deals can add up to some worthwhile profits. I think it's foolish to short this stock until it's solidly trading under $1 (and then I'd say shorting a stock under $1 is nuts). And don't assume that the next offering will crush it. I can go on about numerous positives for ASTI but I'll stop here.