Becker Drapkin dumped 1 million shares at 14.096 on 8/23!
Form 4 filed after yesterday's close. That pretty much proves we were OVERBOUGHT here.
I think it retraces to at least $11, over the coming days. And it could easily go down hard on this rather disturbing news....as the pendulum could easily swing in the other direction just as far as it did to the upside. (That would take the stock down into the high single digits.)
Disagree. What is important about this sale is twofold: 1) It tells us that the risk of a run-up to $16-20 is off the table, making a short position that much less risky. 2) It tells us there is a near term ABSOLUTE CEILING in the stock at $14.
Meanwhile, in a worst case scenario, considering the vigorousness of the insider selling (1 million shares, sold on 1 day, is roughly 2.5% of the company!), the stock could drop to $9...or even as low as $7.30-7.40 (however unlikely, this latter scenario).
Meanwhile, people are going to want to preserve their huge gains here...and there is going to be more and more selling coming out. $11-11.35 seems virtually assured to me. And I start making money, once it gets below $11.85.