There are 2 things that I am trying to get my pea sized brain around. I need some help.
1 In the link that I have included shows 5 million or more shares bought by institutions (block trades of 10,000 or more shares) and 1 million or so sold by institutions in yesterdays trading. We have a volume of aproximately 10 million shares yesterday. Unless ever small trade yesterday was a sale to account for the other 4 million shares. Wouldn't more buying versus selling make the stock go up more then a penny???? What am I missing??? This is off of google finance page for BSX.
2 With all the automatic selling from members of the board going on, how come the % held by insiders has increased??? Again I am confused. If you looked at this stat off of BSX key statistics page yesterday (while they still had Q2 numbers up) It was in the single digits and now is at 13% (Q3 numbers posted over night). Again how can this be????
mm's are just keeping this proped up so the institutions can rotate selling shares. Volume on news and price spikes just makes these crooks a ton of money. easy money for the crooks. company has tremedous debt and the stryker deal is just a drop in the bucket. Yeah every little bit helps but it does not solve BSX balance sheet problems.
As soon as the overhead resistance (supply) is taken out BSX will move up. Assuming the fundamental situation improves going forward. IMO it's going to take 3-6 months to turnover the stock. Too many institutions own BSX above $7. I also agree that year end tax selling will be an overhead pressure on the share price. We're going to wallow in this range $5-$7 for a while. I believe it goes higher in the Spring 2011...we shall see and GLTA...
A lot of institutions are trying to exit the stock. In order to prevent a stamped and a price collapse like the one before the earning announcement, the MM keeps the stock artificialy high. Just check the option market, no activities and not much premium.
I don't read too much into the short term price action but then again I am not "trading" BSX. If you look at the significant institutional ownership the share price on a daily weekly basis is influenced purely by institutional block trades i.e.:
It will be interesting to see if Paulson still holds 80 million shares of BSX or did he divest of more shares. It only takes a few large institutional holders to keep a lid on share price appreciation if they are sytematically selling their positions. At some point, and I believe sooner rather than later the tide will turn and the overhead resistance will give way to share price appreciation. BSX just needs to stay fundamentally sound and not shoot themselves in the foot which they have done again and again for years. Another 2 quarters under Ray's leadership with steady performance and I think we see share price appreciation back to the $8-$12 range. If they sell a division or two and complete an acquisition or two within the next few months I think we will see the share price appreciate sooner. I don't believe BSX will be acquired. I also believe that if BSX intends to sell a division or two they would prefer to announce those deals prior to year end if possible to clean the books up heading into 2011...we shall see...
Oh and how we keep coming back to 6.30 and 6.31 is wierd.
Maybe a whole lot of support lower and a lot of resistance above. Maybe many are waiting for the first analyst meeting in four years that will happen in middle of November.
I agree trading pattern is weird. That is why I brought it up. I'm trying to understand.
Thanks for the help
BSX has doubled analyst estimates for EPS for 2 quarters in a row now. This isn't rumor this is fact. The suspected downturn in the CRM market isn't nearly as strong as Medtronic CEO lead people to believe in his last quarterly conference call.
I was thinking that maybe the information that I spoke of in my first post was do to short activity leaving. Then after I posted that message came from Bloomberg all the info on short activity. So obviously that isn't the cause for institutional buying with no uptick in stock price. I was thinking the shorts are getting out and institutions are buying making it just even.
I am truly thinking that there is a market force that I am not understanding going on here. I realize that I am leaving myself wide open for bashing. I don't care. I'm trying to understand.