The little pop on Friday (up about 6% to 8.77 and never touched prior session's close) in a weak market should draw in a few traders on Monday or Tuesday. Have the sellers run out of shares?
While there were a few very big trades, are they just some individuals investing or institutions?
Also is this some sustainable and continuing buy program. Without consistent and healthy volume, the price will settle back.
Nope. Volume too high. Big guys are involved here. I think they are just assigning a higher multiple to the stock price. Probably because of macro economic issues. With limited shares outstanding, the price can really move when they do. The company has also been almost violently buying back shares so the base is lower. In summary: Boom!. Could drop back though prior to or after earnings. Not buying any more until I get a good feel for a "base." Party on.
I don't see why it would drop back. It's not as if the market knows the real price of any stock, just whether it's worth more than yesterday.
And if management does its job and keeps on opening new stores, well, that's actual growth, isn't it. That's the sort of reason stocks should move up.
And if management really does its job and finds someone to buy the whole thing for 3X the current price in view of its growth potential, then that's the sort of thing that makes stocks go up fast.
I think you're right, simple new investor interest and low float cause prices to raise.
Once these investors dry up the stock will probably drop back.
We've had two new store opennings in the last month
theory: new store opening in san jose clued the few people still making money in silly valley and they're spreading the clue around; it hit critical mass late last week and started a local rush on the stock; with the small float and volume, even a one-town boom is enough to cause a pop; and since it's genuine appreciation for the product and the concept the price won't fade when the volume does.
other theory: rising since mid-july, rising faster since early september; using a high beta and stories of expansion to leverage a general rise in the market over the same time.
third theory: mercury is in retrograde; the owls are not what they seem.
No doubt you're right about traders and Dave. Yet, here we are, another up day (2.6% to 9.00) in a pretty nervous market. The apparent opening trade at 8.17 probably says something about how thin Dave trades and should frighten away any buyer with a short time horizon.