Sad to see the stock drop 17 cents in the last 8 minutes but a lot of day traders likely wanted to get out. Either that or a shorting spree was activated when the stock hit $2. With the uptick to $2.02 it would not surprise me if the stock was manipulated on the way down. The drop from .87 to .85 in the last five seconds was 15,000 shares.
I watched the trading action for a good portion of the day and noticed some interesting patterns:
1) The morning opened with a sell off. Those taking profits after spending the night listening to their wife telling that one in the hand is worth two in the bush....
2) The majority of the stock (4 million to 11 million) was fought in the .60s. The bashers were relentless during this time, shaking out more weak hands and tempting some action players to play the swings.
3) At around 12M shares, big money moved in and moved the price steeply over the next 2 million shares. Every thing was taken out in large amounts. All the way into the 1.80's and 1.90's. Then again some see-sawing.
4) Near the end the market was pumped to hit $2 after hitting $1.94. The bids and asks were being pulled faster than I have ever seen. Large blocks would appear and dissappear. One legitimate block at 1.99 was taken out over the course of five minutes, opening the way for $2. This was a psychological number that is very important. A new standard has been set. Once we hit the low 2.00s to 2.20's, the stock appears cheap again for the new players with big money (compared to the eventual 2.80s, ...).
5) The last 8 minutes was all selling into the bid. The asks did not stand a chance. A half a million shares dumped in the final stretch. Likely daytraders, but it could have been a house with a large shorting position forcing down the closing price to avoid too much attention on the % increase for tomorrow.
My analysis:
Closing at 1.85 is not a bad thing. It is only .11 cents over yesterday's close. If we had closed at $2+, a lot of people would have been tempted to sell at that new psychological marking. A close of 1.85, which falls between the days highs and lows makes for a good new base.
With the surge that I saw from 1.63 to 1.92, I believe that there is big money on the sidelines wanting to get in. The higher this goes the more attractive it becomes. It is a strange paradox. For the retail bunch like us, especially those in spec stocks, multi-dollar stocks are less attractive than the cheapies under .50 cents. But for big money, anything over 2 or 3 dollars with a good market cap shows stability. That is why we are now in the back seat with a new driver. We are along for the ride. As I mentioned in a post when we were at .39 cents, it is big money and only big money (the institutions and funds) that will carry us to above $1 and into $10+.
The reason I can say this is that after hitting 1.07 last year, the stock never came close to seeing $1 again. Is even dropped as low as .29 at one point. Just a bunch of small folks selling into other small folks hands, losing a penny each along the way getting into other plays.
Now all that has changed. And it is exciting!!!
Tomorrow will be a good sign of what is to come in the shortterm. If news has leaked, we will see more buying pressure tomorrow. We may also see it as news about NOT makes it ways into the financial communities. The IR firm is already paying off IMO.
Any pressure downward will likely be cross selling and shorting as funds play on investor fears. I truly believed we would have closed around $1.60 today given the tendency for a pullback after such a large climb, so the end of day action was a nice surprise.
Each day at new heights brings us to even more heights once Hole 5 and Windfall results are out. I am a serious fan of the $10 share now after what I have seen the last three weeks. Hole #5 will tell us how close we get.
Here's to more white candles tomorrow...
M1.
