Hey Texman, good to hear from you. This is quite a story isn't it? Nice seeing this stock moving the direction it should be. Amazing volatility but I am quite sure the longer term price is 50c..or maybe even zero! As a securities LAwyer this must just shock you, no? Did you see the boys on CNBC making fun of VAPH? HRC, you have obviously done very well with this stock, but I have to ask...what exactly has management doem so far?? What am I missing?
HRC was here from before so he's either a shill or like you say he must see something. I'd suspect the latter b/c he's seemed so sensible. Maybe it's a front! Even I can seem sensible at times--and we see what a fake that is.
Its actually not that shocking to me, i've see stinkers worse than this one. I must warn you that to win at short the stinkers you need a hell of a lot of capital. I'm honestly surprised that VAPH didn't make a run at $50 today and be prepared it still may, that's why i'm keeping my powder dry, above $40 this is pure money in the bank.
Yes, VAPH will return to the teens in relatively short order but then we will have a lot of people who are down a lot and they will go from trading the stock to 'long-term' investors in it so volume will die and the stock will spike occasionally.
The really sad part is that the reasons given for the spilt don't make sense, post-split if this trades below $5 most mutual funds will not touch it.
Zarman, HRC is a smart one - $20 says he has recovered his basis in this stock, so whether it goes to $50 or $0 he is sitting pretty.
I just hate seeing this, the more people get burned in the market by daytraders the harder it gets to bring good companies public, and the IPO market is finally turning about a dismal 2 years.
I'd be interested in your take on OVTI. I'm mystified why that stock hasn't blown through the roof, given its repeated quarters of outstanding earnings, and analytical shorts like you guys might have some useful observations. This isn't the board for it obviously so if you wanted to post over there I'd appreciate it.
Good info Texman. You're right, to keep margin ratios intact a lot of capital is required. I exited a couple of other positions this morning and covered about 20% of my VAPH short this morning for the very reason you gave. My fear this weekend was another spike and getting sold out of this dog, but with my adjustments this moring I am good to about 60. I am sure you have seen some stinkers before, but this has to be up there. I mean this company has nothing, and have done nothig. Do you thing Kashner, being the underwriter as well as a market maker, is a driving force behid this as well?? How is an underwriter allowed to make a market in the same stock?? That is a recipe for manipulaton.