What are they doing? Why?

Discussion in 'Trading' started by qll, Jun 29, 2006.

  1. qll

    qll

    Take a look at intra day chart on AHCI
    52w Low, but business is sound.
    Trades are at exact 100 shares block every 1 or 2 minutes. Looks like an automatic trade placement. Most trades are on bid, so they are active sell orders.

    If you have managed a large fund, could you tell me why would you dump your holdings at this 52w low level?

    This stock is dropped from Russell 3000 index which is not really a index at all, because they select 98% of the market cap.
     
  2. You must own this stock. Why would they dump at a 52wk low? Hasn't this stock been making new 52wk lows for the last 6 months? If someone had gotten out 6 months ago at the then 52wk low they would have 50% more money than if they held it to here. Also, if you managed a large fund, why would you want that in your portfolio when the new quarter starts next week? People would look at it and wonder why you suck so much for having that in the fund.
     
  3. qll

    qll

    the thing is that most funds are adding shares during Q1. you can see holding report from march 31st. the stock is down from jan01-mar31, but big funds are adding, so only retail investors and shorts are bearish.

    so far, no more bad news. all old bad news should be factored in, but recently it is accelating the down trend, then suddenly slowed.

    all i can feel is that some fund is quietly dumping and another one is passively adding. maybe end of Q dumping by funds needing to report and buying from a private hedge fund etc.

    i just got in, did not lose much. i did not expect much from it, maybe only give me 30% in 6 months or 50% in 12 months.

    i got in for 3 reasons
    1 value, negative growth will be slowed or reversed - you have to read 2 10Q and 1 10K and 1 CC to find out why.
    2 all investors in it are crying at $4, even shorts said covered at $4, so $3 should be a steal, but now only $2.5
    3 could not find a single reason to sell or short this stock.