Blowout quarter leads to Higher initial stock price
Higher initial stock price leads to People taking profits
People taking profits leads to Lower price
Lower price leads to Reduced volume
Reduced volume leads to Increase in stock price
So once profits are taken, stock price crawls back up
I don't think that's what it is. People don't sell on a great Q and drive the price down 8 percent. The volume was extremely heavy, so some big investor blew out of the position. Why? That I can't answer.
People don't sell on a great Q and drive the price down 8 percent.
What happens is every stop loss lowers the ask price which causes the next stop-loss to trigger which causes the next lower ask to trigger and the PPS falls down alot in a short amount of time. If you look at the chart it looks like a waterfall. Now that's thats out of the way for today we should be good the rest of the day. Its not profit taking, there were no profits to take! Its giving shorts time to cover at a cheap price.
There was more to it, after profit taking what happened was an engineered flash crash aided by algorithm trading. That took out all stops, and the shorts got an opportunity to cover and get cheap shares. They are probably still covering some shares and want to make sure this doesn't run to high, then they'll leave it alone and go after some other stock to do this #$%$ to since LF at this point everything is pointing to a bright future, so the risk-reward for shorts is like...not there anymore. In fact they may switch positions and pump it once they cover.
I agree. Seen this many times in the past 5 years with other companies. It appears that shorts got to cover. Could have been mutual holding a long time but that does not make much sense when they could have sold much higher a while back Will know for sure by day's end. Fundamentals appear good. I will buy some more at days end if at 8.70 or above.
Whatever it is I'm not selling. I've only owned the stock for a few weeks after reading an article which brought it to my attention. After going through their financials, reading the last conf call, and reading articles about how well their products did during the holidays it looked like a good time to buy with all the negative news on Hasbro and Mattel. I was very pleased with earnings and what they had to say on the conf call.