It May Take a Few more Months Before that 4 Million Share Block is Absorbed
The day they were booted from the Russell 2000, they fell to the low 3s and have remained in the doldrums for a long time. For this reason, I would consider the stock to be oversold. I wouldn't be in a rush to but it. The counterparty who bought the 4 million share block at 3.05 is trying to mark it up in the morning for a few pennies, but if the volume doesn't come in, he's willing to get out even or at a small loss. This has gone on relentlessly for the last few weeks. On top of that, we have tax loss selling. Eventually, this block will be absorbed, but with the anemic volume, it may take awhile. Even among those who choose to condemn the Company, it may provide a trading opportunity, since the stock often bounces in January. There's plenty of time to build a position at current prices, but I don't expect to see too much downside from here. The trading appears to be orchestrated with the same 3.05 pivot point on that same fateful day. I sold some 2.5 strike puts yesterday because I expect NAV to maintain the low 4's through next year, and it's another lame income play, as I lick my wounds.