The funds stuck in this stock have no choice but to paint the tape and make it look like people are buying. Light volume "take-ups" and high volume "take-downs." Just today, the company gained $4.5m in market cap for a $1.3m order...which will likely net less than $200,000 of income. Buyer beware.
"...Just today, the company gained $4.5m in market cap for a $1.3m order...which will likely net less than $200,000 of income."
So you think the upside pop wasn't justified based on the amount of the contract award. Let's use the same logic to see if the sell-off after June earnings was justified. The earnings report showed that EPS missed the analyst estimate by $.05 (i.e. .01 actual vs .06 estimate). The .05 differential is $680,000. Did the stock lose $680,000 in market cap when earnings were released? Let's see.
The stock closed at $3.65 prior to earnings. And opened at $2.77 after the earnings announcement. So the stock lost $12 million in market cap because of a $680k shortfall in earnings. Does that sound right to you? Because if it does, with all things being equal, then a $200k surprise upside to earnings would translate to an increase of $3.5 million in market cap. Which isn't far off from what happened this week.
As for the hedge fund manager who you say is manipulating this stock, he was just appointed to the board of directors. So he is no longer just an outside fund. He is technically an insider. It would be illegal for him to manipulate this stock.