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Noah Education Holdings Ltd. Message Board

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  • drmerlin007 drmerlin007 Jan 25, 2008 8:52 AM Flag

    Question for drmerlin

    This is just my opinion based on watching the trades each day and from the daily and hourly charts. The stock has had plenty of buying on the ask the last several weeks but the price continued down. The daily volumes were low so unless big news brought in big buying volume the shorters had little concern of getting caught heavily short. So they keep shorting and also drop/sell small shares (usually 100) on bid to keep dropping the price. The shorters also had a weak market on their side to help their cause. They take advantage of the time (3 months give or take) between earnings announcements to short a stock down and usually cover their shorts and begin building a long position about a month before earnings. Sometimes they move the price up into earnings if they think the numbers will be good and sometimes they don't if they think there is more downside to be had. So what will move the price up. More buying will do it and them flipping from short to long will also do it. I think the stock is very undervalued and earnings will move it up if it does not move up before then. Do the shorts know something that the rest of us don't? Only time will tell. There was some nice buying late yesterday so let's see if it continues today.

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