Procera traded the same volume in 1st ten minutes that it traded in the 1st 3 hours yesterday " 35k " . FFIV is up $3 - 4 . Apropos to " Good Morning post yesterday " Going into Wednesday morning trading i approached expectations very tenuously . I was pleased with the manner in which PKT performed on Tuesday but based on what i discussed pertaining to AT&T and JNPR and their announcement after the close on Tuesday approached Wed very tenuously. I do feel shorts in a very methodical determineed manner guided Procera's currency lower on very little volu & resistence in the AM hours. Now what i am about to state is " relatively speaking " i was pleased to see buyers come in at the $10.70 level create demand and absorb supply . PS I do feel with confidence Natural Seller are done / exhausted most stock for sale is coming from shorts. They committed to their But overstaying there welcome.
Today was a high volume sell off and is an extremely bearish day on the chart. To close at basically LOD on high volume is very bearish. Stock is screwed. And now we don't eve have the hope of some positive news coming out.....management dug a hole and decided to hibernate in it.
avg 30 da to 50 da vol is 400k to 495k...mid range vol today..after next week we go up..why did you buy right before last eps CC?? You got greedy and believed all the pumpers on a Yahoo BB..no wonder you are getting hosed and are such a good contrarian indicator for DPI..it's a seasonally weak qtr (Q1), excacerbated by Eurozone austerity on fiscal spending...telco spending is just delayed 1-2 Q's..a pushout, not a cancellation...
These shorts are certainly committed , they are doing a excellent job precluding PKT from gaining back any well deserved Real Estate. Adding to their investment at current i certainly hope bites them in their #$%$ hard . Demand for PKT's shares today is twice that of Allot , check out the volume.
I wonder of part of the reason that the shorts are so daring is in part due to the drastically deflated share price. I know that sounds counter intuitive but my thinking is as follows:
If we apply even a modest acquisition premium of 25% above Procera's 52 week high of $25.99 we get $32.50 per share. So I think it is fair to describe it as Procera's having already "tasted" that $/share value as being within range and it becomes an important psychological benchmark of a what can be achieved.
Based on the above assumption, and today's share price, an acquisition would involve a hefty 200% premium which seems highly unlikely. So for the short term, we have projections and evidence of a flat frst two quarters with a low liklihood of acquisition in the near term. Folding in low liquidity and we have a nice playground for the shorts to hang out in.
I am sure there are many holes in my argument but there have to be concrete reasons why the shorts are still aggressive when the SP is hovering just under $11. As I outlined above, I just don't see any deterrants with a low liklihood of significant positive news or an acquisition in the near term.