If the shorts and market makers can't take this to 1.50, I'd be very surprised. But don't cover at 1.50 because once at 1.50 there will be a wave of selling BECAUSE even the die-hard longs will know how dangerously close a-buck-fifty is to delisting and penny-stock status. They will do anything to avoid that kind of catastrophe.
I've been looking and thinking the exact same as your conclusions. I suspect one or two of the market makers are covering their blind short positions, or they have broker friends that they are allowing to cover on the cheap. I was thinking last night that the short interest report is overdue.
This afternoon someone is dumping at least 1 million (maybe 3 million by end of today) shares at 1.82, and the market makers are buying them (and maintaining) the 1.81 bid.
Once the seller is finished dumping to the market makers, they may want to let the pps run for a quick profit, or they could just as easily manipulate the pps down another 30%, then reverse the manipulation for a larger profit.
This could go on until BK, or the next quarterly, whichever comes first
Consumer demand. Are you talking about best buy?
The notion of buying and holding for a short squeeze is smart, most of the time, if you are a bottom fisher.
That method is extremely dangerous when the pps is this close to the pink sheets and delisting, and when management can't get out of it's own way.
No denying that for shorts, FST is the gift that keeps giving. FST management unable to stop the bleeding so makes you wonder if the company deserves to be in business.
Sorry, does not compute.
When the stock is hitting new lows, the margin call are more frequent, as their are more investors who "more recently" bought on margin and (as of today, say) fall into the max loss category, in which case they get the call.
I call it as I see. The fact that I bought at $2.05, hoping it would bounce back to the $2.50 area, does not mean that I don't NOW see what's happening. As long as there are sellers, the brokerage houses will have shares available for shorting...and the market makers are able, and continue, to keep the asking prices down, causing retails to sell after losing up to, what, 70%?
At $1.50, FST's less-than-favorable assets would be risk-worthy to a larger, better-run company to acquire. That's a more certain bottom. Some day this stock will trade, consistently. above $2.00.
Wrong on both accounts:
1. Shorts would never, ever, purchase 100 lots (or less) of a stock trading two bucks or less
2. It does work, for periods of up to a year or so. FST easily shorted to $1.50 from here, BECAUSE, it's the market makers for FST who want it to go down, and THEY are trading the 100 (and less) blocks to each other
3. The stock goes to 1.50 in a month,,,,,but that has nothing to do with where the pps is a year from now. Don't underestimate the power of the shorts AND the market makers working together. Long term hold, yes, it will pay off, short term, this could go below a buck when the entire world is against the stock. And you've seen THAT happen much more often.
I ain't about a dead cat bounce, now is it?
The credible shorts know it's about three things ONLY:
1. Is the volume drying up (yes)
2. Has the low of the the gap down been broken (no)
3. Is the trading pattern since the gap down been one of market maker accumulation (yes)
The smarter shorts cover, 100% of the time, under these conditions. The shorts without experience lose their profits because they can't see what I describe. The smarter shorts understand the market makers can afford to hold on to their accumulated (cheap) shares for more than a few days, before they let them go at much higher prices. Patience is the key with all bear attacks
the real sign was the amount of 100 share blocks that were traded. Retails would not buy 100 shares of a two-dollar stock. There were hundreds of these blocks. Level II will show that they were market makers selling to each other. They were holding down the asking price, by selling their own shares in these small lots, to each other. This in turn keeps the bid down.
The weak hands see this action, and throw in the towel, and sell their long shares. Thos e were the trade blocks greater than 100 shares. All the while, during the day (and certainly the last hour), the FST market makers would be accumulating the larger trade blocks for their own inventory. I've seen this action for 30 years. SEC sanctioned. That's how market makers make the bulk of their money; without them there would be no market. The poor retails know nothing about the market makers for each stock they own. They foolishly think there is someone else on the other side of each trade. All but the daft understand that in many cases, and in this instance, most of the time, it's one of the market makers on the other side, buying your shares (to sell later at a much higher price.
Yep, think Green Mountain Coffee Roasters,,,,a year ago,,,,,,read the hundreds of negative postings from the shorts...then watch the pps and how it recovered 300% since then.....tick, tock
yep them shorts getting worried, evidenced with all their postings here. They be technical traders; they know all too well what it means to not break the recent low, and to watch the "relative" volume dry up. They know the market makers may NOT let them cover at a low price after today. The market makers for FST control their movements. Yes, them shorts may "decide" to cover, but ONLY at the price the market makers allow. And I'm thinking the mms have accumulated millions of shares at and below 2.00, and they are ready to allow a natural bidding process, not one that is manipulated be the phony bids and asks that the various market makers have been placing for the last few days.
and the volume is drying up.....this means, 100% of the time, the shorts will soon leave, and the market makers will have accumulated millions of shares on the cheap. These same FST market makers will stop placing bogus ask lots of 100 shares, and actually let the market take over, sending pps higher. happens every day on the street.
You can bet the average short is just now getting worried, because they know all about market makers and what happens when sellers are exhausted, and the deep pockets (not you retail shorts) reverse course to make as much, or almost as much, on the upside. This kind of thinking happens ONLY when the pps is down 30-40%.....the idea being that it's much harder to bring it down further as a retail short,,,,knowing that the mms and the deep pockets are about to reverse course. To not consider covering is pure folly at this time.
Be careful of your short position. Downside limited. You are warned.
The market makers for FST are loading up here. Once the sellers are exhausted they will let the price run up. You know the deal. Watch out. The market makers are not about fundamentals, or management, they are about making a profit accumulating very cheap shares, and, then, on the future sell side, selling them at a much higher price. A price that they are manipulating both ways, with the aid of the pro and retail shorts.
No problem with Scottrade purchases in IRAs, BUT they won't allow flex reinvesting (or DRIP) for leveraged funds like MORL.
The market makers are keeping the pps too high. Watch carefully the bids and asks, and volume of each, for a few days. When they are done selling shares to us at the highs, these same market makers will let the normal buys and sell prevail, and the pps will drop to 25-26. That's where I buy. This will be a great long term hold. It's all about understanding who, and what, are market makers,,,,and how they affect pps movements each and every day of 99% of all stocks. There are reasons why the mms act this way with IPOs, but they control (and cause) pps movements with most stocks that trade a lower volumes.
It's all about time, NOT timing. And it won't take ten years to make money here. It will, however, take a few years before, ALL OF A SUDDEN, you are able to calculate yearly average gains taking into account the huge dividends. Many traders buy into these stocks for the income at a time when they are fed up with recent trading losses,,,,,but they run at the first decline,,,,and that's where the market makers, the brokers, and the pro shorts make a living,,,,but stealing shares on the cheap from weak retails who didn't realize that "investing" takes years and patience. Lots of brokers would not exist if retails never sold their "new" investments during the first year. Time, not timing, is required for high-div/distribution stocks.
As Buffet says, the pps only matters if you are selling the stock. The shorts are making a killing here...but this is a real company with real assets, and like such companies, the pps will reverse one day when the shorts cover and the deep pockets want to lock in a tremendous dividend going forward. Meanwhile we collect 10% dividends......much better than other bear attacks on other stocks that pay zero dividends. This is a long term investment, like ALL high-div stocks. The current pps matters not, UNLESS you are short, OR you have to sell shares. 100% of the posters and bashers here are looking to buy shares of AT.......they just want you to sell your shares to them at a much cheaper price.