Siri traded down on each of three consecutive days last week. On each day there was a swift approx 4% down move which established the range for the rest of the day. These moves were generated by the major holder of the stock who had two objectives 1) measured selling off of a portion of there holdings for year end portfolio performance, 2) to force the 7.50 calls, which they wrote, to expire worthless.
On friday AM the price was safely below the 7.50 mark and only a little quick sell pressure was needed. In the afternoon, buy pressure from multiple sources began building, the major holders sold just enough to keep it around 7.48 where it was for a few hours. In the last 30 min they lost control of the price, why? Because a great many shorts did not want to go into the weekend short, and realizing that they were not going to get a better price bought in earnest. Afterhours was marked by continued buy pressure on extraordinary volume. It was mark by numerous multimillion dollar buys Above Market price. Because few shorts would cover in these massive buys, I believe that this was the beginning of the index fund buying. Some were probably free to begin their rebalance after the close of buissness on Friday.
I believe that this all bodes extremely well for SIRI in the near term. Hold on, it should be fun.
Come back and read your post on Jan 20 '05
and you will be sick. You will be wondering
why you didn't sell at this price before it
dropped back to the $3.00 range. Go ahead
and dream. That is what is wonderful about
America..... Everyone can dream!!