anyone really know what is going on with this stock?
Given the move in the market today, one would have expected better performance from this dog. Got shares from the secondary and have not seen light of day since. anyone know why the sudden disinterest in the stock?
What happens when a MLP company does a secondary is: criminals, commonly known as Hedge Funds, along with the Investment Banking Cartel short the stock unmercifully. Then when the criminals and the cartel determine where the bottom will be, as they control the stock price, they and their friends pile in at the exact bottom. Sometimes this bottom occurs on the 10th or the 11th day after the secondary.
After the secondary, the stock becomes completely disconnected from the fundamentals and is entirely subject to the whims of the criminals and the cartel.
In fact, the Investment Banking cartel knows in advance that the secondary is coming (the MLP company hires the Investment bank) and their own "trading desk" short the the stock, because the "Chinese Wall" that the Investment Bank tells the SEC exists between trading and the investment banking department: DOES NOT EXIST. The SEC does nothing!
That sure is a good question. Both SLCA and EMES were up today. Others on this board have claimed that there was no effective 'dilution' with HCLP's recent action which would cause the share price to drop. I admit I can't personally wrap my head around what 'they' (who are 'they') actually did. There is always the possibility that 'the public' DOES see this as dilution and hence the poor recent stock action. Perception is everything, whether right or wrong.
It's not *dilution* it's a couple million more shares hitting the market on the sell side. supply vs demand, that old story. If someone is selling millions of shares at one time, the price gets discounted to absorb them.
a secondary factor is people may have been spooked because it was insiders -- in fact, the controlling partners -- who sold the shares, which never looks good. personally i think mgmt could have managed this better, but on the other hand I took advantage of the dip to buy some more shares yesterday, so ultimately I'll make a couple bucks from it.
This happens a lot after secondary's of this kind. Look at EMES. They were at around 115 when they announced one just like this. The stock dropped to 95 within a few days, despite the fact that the secondary didn't dilute the stock one bit, and is now pushing 120. Lots of new shares for the market to digest. Hang in there! Within a month we are pushing 70 I predict.