So much for "Global Warming", folks! Major ice, sleet, snow storm in the east causing power outages and disruptions. Time to buy a generator..
The Green weeeenies are disappointed that the earth has been cooling since the mid 1990's. Look up the stats, Global Dumbers.
Agreed. Unfortunately a Tesla battery won't last long in sub-freezing weather, so scratch the idea of using the battery as an alternative home backup power source.
Maybe if there's a widespread ice storm in the mid-Atlantic with power outages, people could plug their home electrical heaters into their Tesla battery in order to survive!
Agree with what you say and thanks for your response, but that still doesn't explain the 4% jump today on no news. I've scoured all news sources I have and can't find anything. I have to suspect something was said at the cozy Investor meetings to analysts. So much for Regulation FD...
Was thinking this might be a good short, but experience has taught me to wait until I know why it went up.
Good point. Not to mention the stock is soooo oversold. Due for a bounce this week.
You obviously haven't been investing/trading very long. This is common knowledge. Google it and there are several articles on the subject of institutional window dressing.
Most Mutual funds have October 31 FY Ends. That means tomorrow...
APOL ended Oct 31, 2012 below $20/share, so it's up almost 50% on the year. Having APOL in their portfolios will make institutional money managers look good.
So tomorrow (Oct 31st), I wouldn't be surprised to see some Window-Dressing-related APOL buying by institutions to have the appearance of having winners in their portfolio at quarter-end and Year. Additionally, there will likely be an absence of selling by those same funds.
Here's from the article comments:
Today appears to be the LAST GASP of the massive short squeeze that has been at play with APOL. CECO seems to be retreating in profit taking moves as would be typical of a stock that isn't as heavily shorted as APOL.
It is likely that APOL will follow CECO with a retreat/retracement that is perhaps more substantial. There's a reason why APOL's short squeeze has lasted 4 days:
As anyone who has had a margin call knows, brokerages usually give you 3-4 days to wire in funds. Today is the 4th day of APOL's short squeeze, so the short-cover buying activity will most likely evaporate tomorrow.
Here is the sequence of the recent short squeeze as I see it now:
---DAY 1, Thurs Oct 24th - 28% rise caused brokerages to forcibly liquidate some short positions who had too much exposure and not enough equity in their accounts.
---DAY 2, Fri Oct 25th - A further rise when brokerages called in other short positions and forcibly liquidated the rest that didn't get forcibly liquidated on Day 1.
---DAY 3, Mon Oct 28th - The remaining shorts who were not liquidated FORCIBLY by brokers are the ones who were given 3-4 days to wire in funds. Those that didn't get funds wired in by the close on Monday saw more forced margin call liquidations. That explains the huge jump trading volume in the last half hour and a surge to $27.95.
---DAY 4, Tues Oct 29th - Final day of margin call liquidations as shorts who didn't get their money in on Day 3, were seemingly immediately liquidated at the open. The stock shot up to $28.91 in the first 8 minutes of trading from a close of $27.95 (no news on the company to explain the rise).
As Day 4 of the massive short squeeze comes to a close, the stock is fading into the close -- evidence that the short cover buying activity is depleted. Market makers know this (they have access to the limit-order book).
Thus concludes the anatomy of an absolutely CLASSIC SHORT SQUEEZE...
For link to the article, GOOGLE: "seeking alpha" short squeeze apollo
FYI - There is a compelling article on Seeking Alpha:
Both Apollo And Career Education Shares Went Parabolic This Week. Which One To Short?
Says much of the APOL run in the past few days was due to a "massive short squeeze" that will most likely implode after today.
For a link, GOOGLE: "seeking alpha" short squeeze apollo
Good luck to you. I think you'll be happy with your trade. In the next few days, there will be a conspicuous absence of short covering to fuel this rally. That's when longs will realize the rally is fading and rush to take profits. The decline can be rapid. I'm thinking initially to about $27 in a few days. And then lower later.
Final short margin calls are being liquidated today. Once that runs out of steam, the stock falls because declining revenues and declining enrollment. They only beat earnings estimates thru cost-cutting.
21% short interest mostly got slammed in the rise.
Today is the last day of the short squeeze (4 days after the earnings rally). Stocks usually fall under their own weight after the short squeeze fizzles.
That's true, but it costs money to restructure while enrollment is declining and the company is scaling down operations to match enrollment. That means operating leverage is reduced during that process until enrollment levels stabilize. Then and only then, do we see a bounce in profit margins.
11 quarters of declining revenues.
Up 50% in a week mostly on short covering.
Once margin calls are depleted, the stock runs out of steam and retraces.
The reason for the inexplicable surge (with no news on the stock) is MARGIN CALLS for shorts are being called in this a.m. Remaining shorts are being forced to buy to cover their short positions. Before last week, there was a high short interest in the stock (most have been called out by now though).
One of the best shorting strategies is to wait until final margin calls are due for shorts during a short squeeze (usually 3-4 days from when they were triggered).
Today is the 4th day after the 28% jump on the earnings report last week, so the final short margin calls are being liquidated today. Buying to cover activity will fizzle and then the stock falls under its own weight.
If one is long a stock undergoing a short squeeze, the last day of the squeeze represents the last good profit-taking opportunity before the stock consolidates (usually at a lower price level)
The article says that much of APOLLO's share price jump last week was due to a massive short squeeze -- and only partially due to longs buying.
In addition, it says
..."Next week, don't be surprised if analysts step out of the wordwork to declare that APOL has gone too far, too fast - and it'll retrace back to $25 or below.
CECO will probably be left alone because their fundamental picture and their balance sheet have dramatically changed for the better and the short interest metrics prove that CECO's rise couldn't have been driven by a short squeeze nearly as much as APOL's rise.
Short squeezes often implode rapidly once short-covering activity winds down. Such might be the case with APOL"
Suggest going long CECO and short APOL.