Looking at a thinly traded stock, need some advice

Discussion in 'Trading' started by chsbla, Oct 9, 2007.

  1. chsbla


    I am looking at this stock and it mostly deals with around 150k-shares a day. Market cap is 250Mil.
    stock price is 15s

    it mostly will trade 100-500 share lots all day, however over the past few weeks almost every day at 11:30am or 12:30 it trades blocks of 31k.
    The trend it establishes after that block trade has gone though is the way it trends for the rest of the day.

    I'm thinking this is the stock buyback program in action, but i'm not sure. Would any fund be stupid enough to buy the same size lots every day at the same time?

    What do you think of this? How would you trade it?

    anen is the ticker.

    any thoughts would be appreciated.
  2. Sorry to interupt this thread, but I thought from the title it was Timmay, LOL!
  3. The stock described by the OP is too liquid for Timmay.
  4. ig0r


    Are you sure these are trading and it's not just a block being printed?
  5. Aisone


    Liquidity is less of a factor imo in determining value, and more of a facilitator. Lack of liquidity doesn't mean there isn't as much a good value as a high cap (often quite the opposite because one-direction order flow can make it overvalued and undervalued easier), but it simply introduces other risks like being easier to manipulate (albeit is a low risk), and harder to exit a position, right or wrong, because of wide and thin bid/ask spreads, infrequent trading, and small volume of shares per trade.

    It also may involve holding a position longer, altho that's if there is a lack of volatility, which again doesn't necessarily mean lack of volatility.

    As for ANEN, its obviously bouncing back from a selloff in august, but personally its not volatile enough for my tastes.