hello total-
Lets get our timeline/tradeline straight on this, it will help us see the real players action.
The press release was out at 3:27pm yesterday. and as you mentioned, the stock had already been as low as .09 bottoming before the negative press release. In fact, the bid and ask was .09 by .12 for most of the day on very light volume.
During the time it was at .12 there was almost no volume to speak of. 3 trades were made after the announcement, successively at .11, then .10, then .09, to close out the day. Last of the squares in my opinion, who didn't see the iceberg til it hit the ship, and the short players let them have their rush to the door as usual. Today the stock opened higher and pushed higher on stiff volume.
Short covering, and the market makers marked the price up accordingly.
Whether it closed at the point it was before the announcement is open to interpretation. It happened to have its last trade before the announcement at .12, but the bid ask was .09 by .12, so could just have easily been at nine. Further, the low down volume figure for yesterday after the announcement compared to the high, up volume figure today is indicative of the squares getting out yesterday, not indicative of any intrinsic value at yesterdays closing #, or legitimate action relating to the news. Todays action and volume a better indicator, imho.
Does that make sense? A bit of splitting hairs, particularly since the point of the thread is the potential trading on inside information before the announcement, which went on for 2 months. And that should be clearly evident. Lets not concentrate on what may have occured in the few minutes before and after the announcement on low volume. its missing the point.  |