It seems like an orchestrated attack - check out the number of option puts
I notice that there are outstanding puts on CALL for February in very high numbers:
1899 Open puts with a strike price of $15
182 open puts with a strike price of $10
452 open puts with a strike price of $12.50
That's a lot of option put contracts and a lot of people who want the stock to go down to at least below $15, and more that want it to go below $10. It seems to me that there are a lot of interested people who want this stock to go down. When it was up at even $20, you can see how much money the puts were going to lose. I think all of this posting of negative opinions on the message boards, together with getting sleezy lawyers to take class action suits (which I don't think you have to pay for -- correct me if I'm wrong -- the lawyers "find" their fee in the "recovery") all seems to be pretty orchestrated to me.
The above numbers only reflect the option puts. They don't reflect the people who have actually "gone short" and stand to gain a lot of money if they can push it down to under $10.
I own the magic jack, which is why I invested in the company, because I love the product and can't think of any reason why the company wouldn't succeed. There may or may not be some "funny accounting business" but this particular panic that is being created by the shorters is artificial. It's only based on a rumor and the appearance of sleezy lawyers who are still fishing for a named plaintiff.
I am holding until I see it hit a bottom before I double down.
Yeah this whole brouhaha is 'artificial'. That's why the founder just split, and that's why the company can't issue a word in their defense, that's why you can't explain why they play with the reported numbers on their books.
If you had done a little research on CALL you would know by now that this is a company that has always been highly aggressive in defending themselves.
As always the bright side is that IF the company survives you're likely to qualify for some compensation via the law firms you so revile.
Also consider that this is a company that has regularly manipulated the market to implement their option strategy. For the first 10 months of 2012 when they were shorting puts the stock mysteriously rose on average 3.6% the week going into expiration. After expiration? It would drop 0.6%.
Funny that. I'm sure the lawyers will have a field day when through discovery they subpoena CALL's trading records.
true, the only reason for a stock to go this way naturally is if the company officially stating they did something wrong. other than that its artificial manipulation. but i don't care, eventually this stock will go up.