Huge open interest today on April 12 puts. It looks like someone with deep pockets wants to push Brocade down over the next twenty plus days.
almost all of the BDC's are down today. Maybe the potential interest rate increase from the Fed is causing the sell off.
I am looking for a close today at $2.75. Volume is very good but there are day traders piling on that will close the position before the end of the day. This could be a good place to add shares.
There are only three possibilities that I can think of: (1) stock is being manipulated by selling at the bid to drive out weak hands and then add to the position on the cheap or (2) short sellers jumped on the offering news and continue to pressure the stock by selling additional shares short or (3) a large institutional holder wants to reduce or close their position. My guess is an institutional holder wants out.
They will have a real hard time floating another secondary after the last buyers were burned. I don't see any way they had a chance to sell the positions for a profit before the bottom dropped out.
26.89 was the value of RGP at the time of the announcement (.4066 X price of ETP at that time). If ETP is trading at $40 at the close of the merger then RGP shareholders will get 16.26 per share (in ETP stock). That's why I am voting against the merger.
I also have no position but the large private placement coupled with a analyst upgrade is enough for me to be wary.
I was going to take a position this morning but I am wondering about the coincidence of a large private placement followed by an analysts upgrade. I am going to watch and wait. If I am wrong then good for you guys!
My thinking as well. I sold all my shares at a loss last December (for tax loss purposes) and was planning on buying them back after the wash sale date but I am way ahead now and it looks as if there is no short term bottom.
Looks like you are right. A 10% drop after the open followed by a complete recovery. You can't blame someone taking profits after a big run up like this.
Very little chance of that. If the US dollar collapsed who is going to gain from that? Practically every country in the world has similar financial issues. Some a far worse than the US financial situation. I do like the idea of being diversified with holdings in gold, silver and the like.
A stock price of zero (if they file for bankruptcy) will take years. You should consider taking the profit from your short sale rather than get caught in some miracle last minute deal. As for me I'm just glad I don't have a dog in this anymore.
I wonder if the strikes at other refineries will have an impact positive or negative on the non-striking refineries? Additional refineries were notified of strikes yesterday.