I am one who believes most trades are scripted and manipulated. Its all smoke and mirrors.
However, for those of you in the "no, it's just the market reacting to supply and demand" camp please explain this last week of trading.
The stock is at 5 year lows. The market cap is roughly book value, the market cap is about half 2012 sales. 40,000+ shares have been sold between $3 and $3.50, almost entirely to insiders.
Who would, in their right mind, sell shares at this level to those in the know?
I see the list of large holders and insiders and just can't figure it out.
Someone, please enlighten me.
200,000 shares traded over 12 days, more than the rest of 2012 combined.
37,000 shares acquired by insiders. This is crazy.
Orders have picked up, 2013 revenues should meet or exceed 2012 numbers. Opportunities abound. The market often acts irrational...this is one of those times.
Rap, Some of these trades are big buys by insiders. I checked the sec files and see buying going on. The past few days the volumes have been very large considering how it usually trades and yet the price stays the same or goes down.
Makes me wonder if something is going on that has yet to be disclosed. This is the same type of action we saw with Bits before we knew it was looking for a buyer. It makes me wonder if this company will be taken over by someone else. The large volumes for this small stock just does not make sense.
I saw the insider purchases over the past few days. I watch insider transactions and use them as a guide of what to buy, so, honestly, I would like to own this stock.
However, the financials are not strong, and the earnings are likewise weak at this time - I am not a believer in sales (or price/sales) as a good performance metric - show me the profit! Bottom line, sales are down and the company is posting losses. On top of that, liquidity of the stock is #$%$ poor - if you want to buy 1000 shares, it could take a couple days to do it, and you have this wide bid/ask spread. Once you do buy, what kind of difficulties will there be when you want to sell? You might drop the stock 25 to 50 cents just selling your 1000 shares.
I can look beyond short-term sales dips and losses. However, where's the catalyst on the near to medium-term horizon that would make someone want to buy the stock at this time?
Again, I'd like to own it, but I don't see the draw aside from the insiders purchasing.