Why a stock is locked? No openning trades can be placed?

Discussion in 'Trading' started by qll, Jun 26, 2007.

  1. qll


    one of my stocks can not be openned any more. it can only be placed via a broker. i called, and i was told sometimes, if they see huge activies in some stock, they will put this stock on watchlist and refuse to let it traded on the internet.

    i looked at the stock's pattern, and i don't see price or volume spikes.

    is this a bullish or bearish news?
  2. Your company is probably a takeover target.
  3. qll


    in its 8k, the CEO is said the company is for sale and hired an investment banker to look for buyers. but this is public info, released 2 months ago. i have not seen any SEC filling today. the stock is still tradeable, but i can only place sell orders, not buy orders, i can not place short either. so i can not OPEN positions. i can only CLOSE positions.
  4. That makes no sense at all. When you close a position someone else opened a position.
  5. qll


    could be a broker related, not SEC related. the broker won't tell me the details whey they don't allow internet trades to open positions. but they can trade for me over the phone at internet rate. i didn't trade, because i don't know if it is bullish or bearish.

    can anyone try in your broker? the symbol is KMA. try to buy at $4 or short at $6.
  6. I tried it and got this message "
    Opening transactions for this security must be placed with a broker. Please contact us." so apparently it is not broker specific.
  7. qll


    could be we used the same clearing firm.
    anyway. awaiting for answers. if the news is from the company, i think it is bullish. if it from illegal trading activities, it will be bearish. could be another Dow John's case where insiders bought up shares in before the news.
  8. Its an insurance co. and the CFO left a few days ago. The reason they are looking to sell themselves is because if they lose the A- rating, then they won't be able to sell insurance. Shares appear to be undervalued vs published numbers.

    If there was news pending, there would be a trading halt, not just no buy orders allowed. I'd call the broker and ask if I owned it.

    Very low volume, so I wouldn't want to be long more than a few thousand shares because you would have to drive the price lower to find buyers if you wanted to exit quickly, IMO
  9. qll


    Check it recent 13D filling, Some hedge fund family, Northaven, bought 1.2 million shares. I am not a trader. I am an investor. I was the largest retail investor for PAE, when it was $0.40. I am current the 4th largest share holder of AWX, and top 10 share holder for 2 OTCBB companies IBIN.ob and ETLT.ob. It took me 2 months to get enough shares and I don't look to sell unless I have 50%+ profit. It could take me another month to sell, but I don't care. On the way up, I will sell high and buy back low to reduce my overall cost.


    Aggregate Amount Beneficially Owned by Each Reporting Person
    Percent of Class Represented by Amount in Row (9)


    Northaven has 1M shares on March 31st and added 200k shares more. Very promissing that top share holders with 1M shares or more are all adding shares, except one which only reduced 37k shares.
  10. Its your money. If it gets bought out, you'll probably do real well if you bought low, otherwise, I'd guess it will take a similar effort to sell it.

    So did your broker say why they weren't accepting buy orders? The only cases I've seen of that before were ones where the listing was being moved or changed. I'm no expert, though.
    #10     Jun 27, 2007