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Albany Molecular Research Inc. Message Board

  • ioj2ioi ioj2ioi May 7, 2013 10:41 AM Flag

    huge volatility

    I noticed that there are many weak hands among AMRI traders. Few days ago, when the stock was racing between $11 and $12, I was able to buy at below $10.5. Someone with a good number of shares was placing a market order, selling out of random fear.
    And then AMRI was up 20% in a matter of 2 days, and today it went down 20% when earnings are up over 100%. I assume the same thing happened today - people got scared out of no reason. All it takes is 1 or few market makers who prime the sell-off, and a million shares followed within an hour. I don't often see a stock with such decent volume + earnings trade at such volatility. But it sure is a huge $ making for those with STRONG mentality.

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    • do people really get scared for no reason? it's not possible that there's something people know or have figured out that's driving them to sell and drive this stock down so far?

      • 1 Reply to karmester
      • I think it was out of no reason, and that's how market makers make their profit.

        Here's how you tell: Huge volatility without catalyst is a sign many weak hands trading it. If "there's something people know", hedge funds would know it first, and you'd see more consistent price pattern - as if price is fixed.
        Like I said, few days ago, when the whole market was trading between $11 and $12, somehow I got my buy order executed at below $10.5 (!) That moment I knew someone is both weak and has $ to lose.

        Racing the stock to $12.2 was pretty irrational. Selling off on a good morning when earnings are up over 100% was irrational too.

        Well, the game is over. My guess is price will be dead for a few months, while hedge funds quietly buy up. Currently AMRI is only 52% institutional owned, so we'll see a lot more buying. We should come back to join the run up before the next earning release :)

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