If you've read the reports from the past few days, the manufacturing reports coming out of China are very weak. Advertising budgets could be affected, and would effect BITA's revenues, as that's how they make their money, working with car dealers. If car sales slow, I'm afraid BITA's revenue will slow. So far it looks like the street agrees with this.
You are familiar with arbitrage, right? You spend more on your round trips than the small profit you made. Wait until the arbitrage boys step up. Right now the market is probably trying to close the opening gap, to allow shorts to cover lower.
let the shorts who desperately have to cover now try to force you to sell your shares here. In my experience, a confirmation of a report like this probably comes out later today or within the next few days.
I'm surprised the arbitrage boys aren't all over this yet, even though it's not a confirmed rumor yet. Oh wait, they're jumping in driving it higher as I type. It's still quite a ways from $40 right now, but we'll see.
Give it time, it'll be down more than 4% tomorrow. Be patient.
The reason it's dropping is there are way more sellers than buyers. And funds are taking profits ahead of the Alibaba IPO. And Musk thinks the stock price is too high. And it is too high.
The increased guidance announcement last week surprised traders who were short, and the next day was a short squeeze. Then you have the normal retracement you get from this move, and it looks like we're now trading at or near support. Even with the move to $63+ last week, the stock remains in a strong uptrend.
If support can hold at the mid level BB, I can see a move over $70 by the end of this week, and higher after that. If there's a market correction (which may be happening), if SLCA remains in this uptrend, we have a very strong stock going higher......and why not? The demand for their services is exponential.
All the growth stocks are getting hammered today. There was talk of funds selling their profits in technology, to get into the Alibaba IPO on Friday. None of it makes sense to me.
The chart was screaming sell, with or without the hedge fund involved. I don't why people think a global slowdown doesn't include China.
The stock actually broke down technically the other day, on very heavy volume. And really, there's no validated study or correlation proving a relationship between a reported hedge fund stake in a stock, and future stock performance. Keep in mind, this stock sold off heavy after the report was filed for the passive stake, and it's even possible the fund decreased their stake since.
Recent reports indicate dramatic slowing of manufacturing activity in China, which could have an adverse effect on advertising and middle class auto purchases. I have no position in BITA, long or short, but I would consider a long position below $70, where I think it's headed over the next few weeks.
So a hedge fund files in after hours today that they have a passive stake in BITA, a typical filing they're required to do. Only in this case, the stock is up another 3% in AH, or about $3....lol.....What the shorts who are covering, and others buying don't realize is, this filing was effective September 3.......and the stock dropped about $10 on September 8......So this same hedge fund could have liquidated the position, and no one would know. If that's not the case, the fund certainly lost a lot of money a few days ago.
Regardless, from a technical standpoint, I have no position, but I would go long if it gets near $70, which I think it will.
And it's interesting the company received the subpoena Sept. 8, 4 days ago, and it was just reported in an 8K filing today in AH. The stock broke down the next day, and no one knew why....Yesterday was a bull trap move, just as I suspected.
There's always someone who knows these things before retail investors. The Feds are investigating their sales practices for subsys....it may end up being nothing, but it will probably weigh on the stock until it's resolved.
LCI is getting very close to a technical breakout. This growth company looks very undervalued, and one of the few long opportunities in the healthcare space right now. Although I decided to get in today because I like the chart, fundamentally this looks solid. So ignore the minutia, and enjoy the ride.
I don't understand this stock at all. Yesterday could have been a bull trap. Today there's no follow through, just more weakness.