Charts are real clear, WHX will drop on x-div day, and the days after that. If there is a change from that, it could, but i doubt it -- rise up a small amount on x-div day, but then it will drop by the div value and more ..... i doubt it will rise on x-div day. So, real simple, from x-div day on it will fall ... today it will hold sorta level on volume which is different than past pre-x div days. Folks are buying in for the div today, and others are selling for gains ... more volume today than in past pre x days. Regards
I normally don't look at 1 day changes. My time horizon is quarters and years as I am primarily an income investor.
But looking at yesterday, it went to $5.40 for about 5 minutes then pulled down fast. Its essentially flatlined since then. I don't see why it would go up in the next 5 hours to make up for the 10% loss coming tomorrow.
Yes you get the distribution... and have to pay the taxes that come along with it if its in a taxable account. It will still be overvalued at that point so I don't see a lot of huge buying pressure to run in. If anything I'd think people would freak out of the drop and it adds to the downward price pressure.
What I really see happening is...
Most pro traders I talk with have several strategies at once. When I say pro I mean that their portfolio is how they pay the bills so they have to make it work. I don't necessarily mean fund managers.
The professional WHX traders move on to something else for the next two months.
People who know what they are doing let retail traders push the price in the wrong direction then take advantage of that all the while many on this board will be posting about manipulation, short attacks, SEC lawsuits, and how the little guy cannot make a profit. I'm sure Liza and I will be lumped in there too.
Sorry for the soap box but it frustrates me that this cycle keeps happening for no reason other then ego and people unable to admit they need to learn.
Disclosure: I am neither long or short WHX, never have, probably never will. I did not buy those put options.