So, WORK announced some questionable news, and thestock dropped. Fine - we all expected that would happen to one extent or another.
But, the day's trading range was only $3.25 to $3.73, and it closed the day with only a small drop to $3.60 or 4%. This is surprisingly small. To make matters even more interesting over 1.5 million shares traded hands. The total WORK float is only 13 million. With that many shares being traded on BAD news the stock should have plumetted - but it didn't.
So, the magic question is "Where is it all going." WORK doesn't have wide visibility with the general investor, so it must be someone that has another scenario for WORK in mind.
I agree with your summary,according to Thompson only 2% traded were institutions .I would have thougt they would be the first to bail out.In my opinion the best senerio for the stockholders at this time would be another company buying workflow.My question is what is it worth with all the debt that they accumulated?
<<I agree with your summary,according to Thompson only 2% traded were institutions .I would have thougt they would be the first to bail out.>>
I would have thought so too. They were the first ones to jump on the bandwagon and drive the price up when WORK went through the management reorganization. Now, with "bad" news they are staying on board. That leads me to believe that they have more insight (or at least think they do) into the long term plan.
<<In my opinion the best senerio for the stockholders at this time would be another company buying workflow.>>
Agreed. At this point the best I can hope for is something in the $5-6 range in a buyout before the end of the year. I don't see WORK as a long term buy and hold - not at all.
<<My question is what is it worth with all the debt that they accumulated? >>
Good question. Hopefully something North of $4/share since the current price support seems to be holding.
It was a wild day at WORK yesterday. Volume was 60x normal. At some point, WORK was down about 10 to 12%. Is it possible all the activity was nothing more than day trading (short selling, covering, etc.)? If there was individual or institutional acquisition or ownership of greater than 650M shares, I believe some SEC filings would be required (see below).
There also was some discussion on this board about anyone owing 300M shares being classified as an insider. With 13MM shares float (using an earlier post), that is about 2.3% ownership. Bella (at least on this board) had 400M shares, or about 3.1%.
I believe there are all kinds of SEC rules, filing requirements, etc. that apply to greater than 5% owners.
Does anyone know what the rules are for greater or less than 5% shareholder (if any)?