BIG volume move to new 52-wk high. 3xs normal volume
OK, so where do we top out today?
I looked at the chart this a.m. and although I am no expert on technical charts, the daily chart did look a bit cup-and=handleish, though I would like to have seen the handle go a bit lower.
Anyway, I quickly doubled my ZIOP holding (average basis $5.89) at $6.38 just in case it lifted off, and so far it has done just that.
Do we crest today and fall back to the mid $6.30s, or is this going to be a three-day ride to the moon as the me-too crowd (sorry, that should be momentum investors) jump aboard the ZIOP starship headed into the clear blue resistance free sky?
Most likely we are looking at one institutional buyer accumulating, and when they have filled their position, then we see some profit taking some slippage of the stock price until it consolidates again.
Anyway, to summarize: UP GOOD, DOWN BAD, and let's see if we can finish the day on a high and gap forward tomorrow. (I think not, but you can always hope.)
This is more than one institutional buyer imo. For weeks I have been telling anyone who would listen since 5.70 that MANY - institutional and retail holders will add ZIOP into and after the CLDA close.
They WILL follow kirk who has doubled their money 2 or 3 times. Fidelity will, other institutions will and MANY large retail investors will - I know many retail investors who will buy over a million shares total - them alone - once deal closes next week.
Remember that this is not a norm deal where retail and institutional investors sell in mass on deal announcement and the arbs come in a wait for the last 5%. Many are holding to get the CVR that could some day be worth $6 So many will get the $30 a share cash next week.
Some with buying power - as I predicted - have started buying pre-deal. Others will post deal.
Sure it may pull back from 6.50 - but it wont pullback for long - once the CLDA deal closes there will be demand.
And dont forget the big short position. They are all underwater now and sweating.