We need to consider few things before making conclusions about price action.
On the positive side:
1) All the short hype created on Friday was a rumor as confirmed by WFG spokesperson on Barron's.
2) Offering was done at 32$/share. So short term reversal to at least 32 is imminent.
3) Test results due any time now. We must understand the fact that no company like DELL,Intel or Kodak would invest in a firm without doing their DD. So let's wait for the results.
On negative side:
1) More short articles on SA which we all longs know are nothing but piece of junk
2) Bad test results
3) Manipulation from shorts at their best
but I would consider interview with Cody on Barron's is the best reply that UNXL gave to all the panic and short hype created on Friday. So I am looking at 32-34 range next week. IMO do ur DD.
Sentiment: Strong Buy
I was from quality/failure analysis area, even if the test results showed some problem, it normally wouldn't kill the product. Just analyze the failure to find the root cause, correct it quickly, and a lot of time that was just some defects in the process, didn't need to go through re-design.
The ten dollar price collapse from the high of $37.44 on Friday, under the heavy volume of 7 million plus shares, was a devastating hit. It will take a awhile to work through it.
The bear raid, or whatever you want to call it, inflected serious damage. The confidence of many retail investors was severely tested and obviously many bailed. I cannot say as I blame them. Some have made three, four and five hundred percent profit on their initial investments and did not want to see it disappear.
Shorts made a big move and it paid off for them. They got many retail investors to panic and sell. The shorts have, temporarily at least, increased their portfolio by $40 million. They are giddy and confident, quite possibly over confident, and likely to take a few more shots at longs. They probably assume they can squeeze a bit more out of longs.
I think it will be important to watch the early action on Monday. If 26.80 holds, I think we will be in good shape. If it does not, I think we could see 22.85 fairly quickly. Look at the chart. We could fall pretty fast. At 22.85 I suspect we will see a massive response from longs. If the unthinkable happens and 22.85 does not hold I think we will hit the teens, high teens and go no lower.
Having said all of that, the reality is nothing has fundamentally changed with the company, UniBoss or partners. If you believed in the company and UniBoss before the raid, the current pps represents an opporturnity. Keep the support levels above in mind. JMHO.
I disagree. Frankly, ALL long retail holders that I know, about ten holders last count, totaling over 175,000 shares, have not sold a single share. Some have purchased more in fact. The drop was driven by shorts and their buddy tutes who sold together to 'shake out' some nervous retailers and create margin calls. Some of this did happen but I believe the short party is over for the time being. This was planned for this option expiration Friday and a series of timely articles created the climate. Monday will be a different story. The shorts will get pounded if the tutes jump back in and I believe they will. My guess it will be up on the open and they may 'sell off' for profit from early buying and then sell short again depending on volume of buying. Either way it will close up for the day.
a rally to 32-34 would get hit with a ton of seling that would take it lower than fridays low. Anyone that doesnt think friday was important. Think again. Most of unxl's investor base was destroyed, never to return again unless proof of product is confirmed.
95% of retail investors who get stopped out of a stock never buy it back.. There are numerous psychological reasons for this that I won't get into, but the shorts know it and they also know that there are going to be a lot more retail stops in place on Monday.. The institutions will wait to see how much lower it goes before they get in. They might even short it themselves to get down even lower so they can get in at an even better price. This is the problem with a heavily shorted stock.
I totally disagree with you. You may say as I am long So i say like this blah blah but the fact is if a negative article from Barron's can reach so many investors so can the positive interview published by them. The title of the blog post itself says that "UNXL plunges 26% on RUMORS". In the interview Cody clearly said what has happened on Friday is just hype and rumors blown out of proportion and everything is fine. I seriously don't think institutional investors would keep staring if the stock they invested in takes a dive on NO NEWS. And coming to the part the investor base destroyed etc, u must understand that investors go and come. Any good investor will sell the stock in highs and buys in lows and that's what is called investment.
Sentiment: Strong Buy