Jeffries analysts have been out to lunch on most of their calls. Of course I think that is when these conversations take place. The have lunch and few too many drinks and come up with these outrageous price targets.
IF you observe on the bid and offer, the offer for the most part just sits there. The bids for the most part are not real buyers. A few retail but mostly shorts covering to provide a market.
Market was up for a change but big boys are still short. BABA looks to close red again with a lower low and lower high again today.
The big issue with these stocks is that is cost millions to bring them to market. When they do not pass the clinical standards they have lost the opportunity to make money. They have only been losing money and the hope was that they could move to the next phase that would lead to making money. Of course this didn't happen. So often this will mean that they will never make any money. There are exceptions but this is usually the case. Hedge funds and the brokerages know this and short these stocks big time. Many of these stocks go to 0. Folks see the odd one the makes it and there is a lot of money made. Most of them do not make it. It is very much like the lottery. I hope for you that this is one of the exceptions and it makes it. I have no idea if that will be the case.
As you can see, they just continue to take this lower. As soon as they quit covering, it moves down more. There are just no real buyers. You may have some 100 or 200 share buyers hoping for a bottom but they are just retail folks that are going to lose a little money. Do not play these kind of stocks unless you can afford to lose money.
As low as wall street wants. At present wall street is making a lot of money shorting. Who is going to buy this today? Nobody but retail folks catching a falling knife. They have much more money and many clients wanting out. So they short and the majority of buyers are wall street covering. As you can see there were folks buying this premarket at 21.50 who have sold earlier or are selling now. This is what they call a blood bath. Now we are under 18 with market makers moving it down quickly during lunch creating even more fear which exacerbates the selling even more. Sorry for longs.
"OH my!" Now we have entered lunch time and the market makers get to play. They take a short position and pull the bids. Bingo! Quick drops. "Ouch!"
Fear and wall street can be very nasty. No buyers and now folks that bought the falling knife are bailing. Do think that it is overdone but wall street, with their control, over does things to great extents when advantage
Down it goes again. No doubt no one wants to get caught with their pants down so more come out with negative comments. Same comments everyone sharing but each time it goes lower. Some times one wonders if there is a little collusion.
I wish this was correct but they are justifying the company they sold the shares for. I thought that I had a bargain at 34. Wrong! In the drug business this is a serious setback.
JPM now saying that BABA investments MAY pressure margins in FY 2016! Didn't say that they would but MAY. Capital emphasis mine. BABA going lower today. JPM short.
Reality is sinking in. Wall street not buying the dips. They are remaining short. Now you have the JPMorgans that the USA taxpayers and middle class bailed out for stealing from them moving parts of their businesses to Luxembourg. Now isn't that a treat.
Of course I do not know. I do not even own it. Yes i am watching because it is beaten down so badly. This is what I find interesting. One gentleman shares that he bought MU but it has been knocked down. He shares that unfortunately he THINKS that INTC and SNDK are the winners as INTC doing more. Another gentleman shares that INTC and MU are not in competition. MU will be supplying INTC with a newer, bigger chip. Has the one gentleman done more due diligence or is his information just hearsay. Difficult to get real facts.
That bubble is long past, more than a decade. The new bubble comes with new stocks. This bubble that we are in is not with MSFT, JDSU, QCOM, MU, etc.
The buyers have left the room. The chatter regarding much higher prices is only that, chatter. Folks, not wall street, forget that we have been in a QE bull market for over 6 years. Talking about company going to 150 when those that move the market are not buying. They are moving the other way. When wall street buys the stock goes up. When wall street sells and shorts the stock goes down. What is BABA and many more stocks doing now? Be careful in this market now.