I know NNA is volatile and thinly traded. Just interesting combo of div paid, and PPS up 12% today. Other than AF's interview in Wall Street Transcript, I don't see any particular reason for the bump, other than "that's what this stock does sometimes". We are still in a range of $2.50 to $3.00 or so.
On Tuesday NNA jumped 34 cents or more than 12%. As of right now, less than three days later, NNA has come back down all but 4 cents of that gain. Even though the Dow is up 87 points today, NNA has continued to fall another 2.5% today, as I write this. This is why I had said on tuesday that when irrational buyers step into the market and drive NNA from its normal patterns, that we should be selling into that surge. Give them all the shares they want and buy back at better prices later
If I may add a little insight. I think there is a committed buyer that is relatively insensitive to price below a certain threshold, i.e. reservation price. Why do I say this? Because I am a professional small/micro cap investor and I do this all the time - sometimes a stock is so cheap and compelling that I don't mind the wild swings between a wide bid ask spread and I will take any volume below my reservation price even if I have to take an offer price that spikes the price up a couple hundred basis points. In this case the buyer is probably thinking he'd buy this at anything around $3.00 so taking the offer at 2.95 even if it spikes the price is fine, because he's just not making progress in accumulating shares by tightening the spread. In the long run, for a stock like this, it doesn't much matter if you get shares at 2.95 or 2.65, it just matters that you get the shares.
"the buyer is probably thinking he'd buy this at anything around $3.00 so taking the offer at 2.95 even if it spikes the price is fine, because he's just not making progress in accumulating shares by tightening the spread."
I tend to agree. I'm only surprised that the much higher price did not bring out more volumn. In a situation where I wanted to accumulate volumn I have placed an order for a large number of share at a specific price. In a few days it brought out a seller with that sort of a position to sell. I'm thinking trying to put together a position a few shares at a time, moves the share price more that you would like.
I can't see any other explanation, but the WSJ piece was out five days ago. So why no buying yesterday. This doesn't look like a grass-roots surge of interest from multiple buyers. Rather it looks like a major buyer who did his due diligence over the five days and put in his orders today.
The problem here is that this sort of buying will not keep the price up. Eventually the buying pressure is going to be satisfied and NNA is going to settle back to earth. My advice is that the regulars here should take this opportunity to lighten their position and figure buying back in at a lower level. There are lots of disadvantages to trading in a low float stock. We need to offset those disadvantages with the occasional situations where the low float can turn to our advantage.
One curious thing is that the price rise to $2.95 was done with only 5K shares. That is pretty light volumne for such a move. Yesterday, 30K shares changed hands at the end of the day and barely bumped the price. This price movement is too irrational. I just closed out my final 6K shares and will wait to buy back in at a better price. The market is headed lower by year-end.