Why is it that small companies with high institutional owership are manipulated?
I looked at my Scottrade account's quotes & reseach for EBIX,and under owership it says that 107.5% of the shares are owned by 142 large block owners.
That being said,if more shares aren't issued,then theres no way for them all to be covered. So,the big boys are trying to shake the tree to get the small time retail investors to sell at a loss,and move on. I suspect that the big block owners are the ones that are manipulating this stock,because they want to make more $$ in it while they are waiting for the growth,and accumulate more shares,while taking out their risk capital. This isn't the first stock with high institute ownership I've seen manipulated like this,probably not the last. Its the same deal as GMCR,262 large block owners,with 102.90% of the stock is owned!! Wasn't this one just shorted to dust not to long ago from an anonymous blogger?
Welcome to Wall Street!!
If the laws changed to outlaw HFT,and that short sellers have to report their short,and outlaw shorting against the box,would level the playing field for retail investors. Right now we are all at the mercy of the manipulators,unless things change,all we can do is go with the flow.(thats why investment firms say to buy and hold over a long period of time to realise gains,because they know about the games that are played in the stock market)
Yep, there's some big boys involved in this with deep pockets. Mr. Yu doesn't have the money to buy a computer program of this caliber. Mr. Yu is just one of their lackeys that do the dirty work while they stay in the background out of harms way.