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  • axg0210 axg0210 May 7, 2013 10:55 PM Flag

    Who is selling and why?

    I can not understand why would a person who has borne the ordeal of the past two years sell the stock at such depressed price. Does any one know who is selling and why? It will nice to hear from recent sellers.

    Sentiment: Hold

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    • Who is selling and why? Is it the same shares being bought and sold for a penny gain?

      Sentiment: Hold

    • Greetings Axg,
      First of all, please be advised that I am long ABAT, have been long ABAT and did NOT sell any ABAT shares today, nor yesterday. Secondly, I like multiple other long ABAT investors believe that ABAT is fundamentally well, well under-priced.

      With that understanding in mind, here is this investor's hypothetical or potential "takes" on what could be presently happening with ABAT's daily price:
      1) Because LBCB no longer posts to this board -- does not mean that whoever funded him has abandoned shorting this particular security.
      2) If you have read any of the news on Chinese "gone dark" securities, you will find that the U.S. and China have some major perspective differences re reporting and regulation authority, i.e. SEC vs. CSRC - please see my "Food for Thought" thread/posts. The U.S. Chamber of Commerce, for instance has recently opined on the topic. The non-agreement between the U.S. and China presents, in some ways an investing opportunity for shorts or large hedge funds/major market players to still actively short Chinese companies listed on U.S. exchanges. A large number of Chinese listed companies on U.S. exchanges continue to strongly lag other stocks, e.g. U.S. company stocks.
      3) Based on several of LBCB's prior posts, the lead-acid battery market players, for instance, would still have reason to see ABAT's stock perform poorly, as would any major brokerage holding shares of any U.S. battery maker, including lead-acid battery manufacturer stockholders. Label it something like "Chinese company stocks" must always sit at the back of the very slow driving bus or even reverse direction buses while U.S. company stocks sit on high-powered forward moving buses.

      In summary, until China and the U.S. come to some sort of an agreement, it may well be possible to continue to accumulate ABAT shares at continued large discounts off their inherent value, if you believe, such as this investor, that ABAT is a strong competitor in the global marketplace.

      Sentiment: Buy

      • 3 Replies to kc79acres
      • Greetings, Thanks for your reply. I am long and adding more shares every week. I am kind of penny averaging, I find ABAT has a Team of good managers and the workforce is highly disciplined. I can not comment on the worker's loyalty. The work force has increased. When I first bought the stock (several years ago) there were about 600 employees. To-day the count is over 1000. A company in financial trouble does not hire; it fires. I have patience.

        Sentiment: Buy

      • Wow! I am getting a kick out of this whole thread.

        First, number 3 by KC practically made me fall on the floor.

        Second, China actually brought some real information and made some judgment about what was happening. I like it. Remember, this is not real shorting, but just the way that daily short interest is shown as MMs may sell first, then buy later - even if it is just moments later. I like the thought process about how more shares may suddenly be available by the way the short interest changed.

        Third, we are still talking very small potatoes here in actual dollar volume. Not much to be made of it. There are people trading in and out. Speculators trying to sell high and buy low. Buy before and positive news and sell after the news is out there. It is really very simple. Crazy when people try to read too much into it.

        For all you know LBCB could have been accumulating loads of shares at .21 and is dumping loads at .23 cents average for a 10% gain. Who knows. Does it matter? Absolutely not.

      • Wow! What a bunch of conspiracy theory nonsense!

        Here is a fundamental stock trading practice followed by many investors ... when you realize a company will not be coming out with any significant news for at least 1 month or more that could possibly move the stock price up, you liquidate your investment (sell your shares) and invest in something else that can grow your money in the meantime - you don't just allow your money to be tied up in the same stock, knowing no significant news events will be coming until months down the road.
        This type of scenario is what investors refer to as 'dead money', if they leave their money invested in a stock with no near-term potential for it to grow.
        There is NO conspiracy, no 'behind the scenes' operation, nothing tricky about it.
        It is very simple, basic reasoning many investors use, when deciding the best way to grow their money.

    • Here's some data from the last two weeks, plus yesterday and Monday:

      Date Tape Vol. Short Vol. Short %
      04-22-13 68,849 26,050 37.84%
      04-23-13 18,390 1,300 7.07%
      04-24-13 102,495 58,913 57.48%
      04-25-13 30,350 -0- 0.00%
      04-26-13 87,425 58,432 66.84%
      04-29-13 310,601 98,384 31.68%
      04-30-13 84,200 27,600 32.78%
      05-01-13 93,362 28,180 30.18%
      05-02-13 104,850 52,800 50.36%
      05-03-13 69,040 49,900 72.28%
      05-06-13 58,486 44,886 76.75%
      05-07-13 51,450 6,400 12.44%

      One of the hypotheses I'm testing is that some insights as to the number of willing sellers can be gained by looking at the proportional short volume on a given day. This may only be possible for thinly traded OTC stocks.

      In this case, if we look at the week of 22-26 April, generally speaking the proportion of shares sold short on a daily basis is small (in fact, on 25 April, none at all). If the hypothesis is correct, that would suggest that there actually was a fair number of willing sellers, as the market maker didn't step in to fill orders with short sales; the exception, of course, would be on 24 April.

      The same proportionally (more willing sellers) would be true for 29 and 30 April, and 1 May. That obviously changed starting on 2 May, and by 3 May had shifted decidedly toward a need for short sales to meet orders, continuing through the Monday session.

      Yesterday, obviously, the sellers had returned (again, assuming the hypothesis is correct).

      FINRA's numbers for today will be out by tomorrow morning; we'll see whether that tells us anything.

0.0410.000(0.00%)Dec 30 3:47 PMEST