It appears the same manipulator pulled a similar stunt just now. At 12:12, he sold 300K shares, taking out all the bids from 2.28 to 2.24. Four minutes later, he bought back 250K shares, mainly for 2.25, where there was a huge ask for about that quantity. So, he may have saved a couple cents on the deal. It's interesting that it was at just about the same time as yesterday, but for a dime lower. Be prepared for the same thing tomorrow at about the same time.
I purchased the shares earlier in the day for 2.27, so still made money on them. I thought they might go back down to about 2.30, where I would buy them back. With HERO, you never know how far the shorts might push it back down. When I realized it wasn't going down any further, and even went back up a little, I bought them back. I probably should have waited for 2.36, but was still right to buy them back, as it turned out.
There was a big bid of about 160K for 2.38 when he sold, so he sold most of his 200K for 2.38, and bought it back for 2.36, saving 2 cents, or about $4K on that part of the trade. He saved at least 3 cents on the additional 100K shares he bought, or $3K, because if he had just tried to buy them, there was a small amount for sale at the ask of 2.39, and he would have driven the price even higher by buying 100K. So, he saved a total of about $7K, which is worth the trouble.
The reason he could buy so much at a lower price is because he created panic when the price dropped so sharply, and people sold to him for fear it would drop further. I know, because I sold some of mine at 2.35 right after the drop, but soon bought it back for 2.37 when I realized it wasn't dropping further, at least for now. So, this guy caused me to lose 2 cents on a bad trade.
This is just one of many games these manipulators play to take advantage of us little guys, as many of you know too well. Another is to increase the size of the bid or ask to get people to buy or sell, and then drive the price the opposite direction after selling or buying all they wanted. The moral is not to pay too much attention to short-term action but focus on the bigger picture, because the big players are trying to use us and take our money.
The ask was at 2.39 for a half hour but someone didn't want to pay that much, probably for covering purposes. So, it appears they sold 200K shares at 12:19 to take out all the bids down to 2.35, and then bought 300K shares two minutes later for 2.36. So, they got their 100K shares for 3 cents less. Very clever, these manipulators, which is how smart shorts can often cover without driving the price through the roof.
$1.77 isn't much lower than now. Can't you imagine more downside than that? If not, you're not living up to your short responsibilities. Keep on giving yourself more rope until you hang yourself.
It lost only 7 cents, which isn't much, especially considering margin calls. It was a good sign that it didn't break through the low price from yesterday of 3.92. It looks like it was manipulated to stay close to 4.00 most of the day, maybe for options expiration. Hopefully, it will move up on Monday.
We're almost at 2.25 now. There's little downside and major upside for long-term holders.
The company forecast of call-driven revenue for all of 2014 decreased by only 3 - 5%, from $178 million to $170-$172 million. That doesn't seem to explain the drop of 46% in share price. Am I missing something?
The third largest company accounted for only 13% of revenue. That doesn't justify a 46% drop in share price, especially when the company raised its forecast for call-driven revenue this quarter due to increases from its other customers. If logic has anything to do with it, this should jump up tomorrow.
Their cash position has been stable the last three quarters, at about $200 million. They aren't burning through it and seem to be managing it well. Go frack yourself.
Ha ha. Trying to panic the sheep, are we? I'm sure it is the worst possible report for you, but looks okay for us longs.
Moody's didn't downgrade the stock. Read the article. They said, "the weakness in Conn's…performance, while a credit negative, would have no immediate impact on either the Ba3 corporate family rating or the stable outlook. They also said they "expect [Conn's performance] will remain well within our triggers...even after the highly-disappointing performance for the quarter.”
I believe Moody's comments are reassuring, considering the operating results and massive drop in share price, and more likely to cause the stock price to go up tomorrow than down.
On the flip side, they couldn't get it down below 3.23. There were too many large buys at 3.24. So, it appears to be a standoff. The rest of the day should be interesting.
Anyone who shorted at 3.18 has no credibility. That's about as risky as going long at 7.80 last September. Hopefully, you'll have some money left to go long after losing it on the short side.