AMNF has a flash crash like this every now and then. Just a small, thinly traded stock. When someone with a lot of shares wants to dump them, it really affects things for a little while. Don't know of any fundamental reason there should have been such a large move. Saw it briefly at $2.13 bid at one point. Usually these flash crashes have been great buying opportunities of very limited duration.
However, I would note that this one occurred about the same time that the overall market was near the lows of the day. I think there is a connection. Someone could have been raising cash due to a margin call on other positions. Do people put trailing stops in on little company's stocks? I don't even know if you can. If so, maybe a bunch of automatic sell stops were being hit.
The technical strength of the overall market has been deteriorating all year. In general, there just isn't an awful lot of good news out there. The economy and earnings are mixed. A lot of worrisome geopolitical things are going on. In addition, the Fed is scarier than it has been in a long time with the market wondering now every few months if the next meeting will be the one where they start to tighten. If they do tighten, which I don't necessarily expect, the market may react very poorly. I don't like the overall market here and haven't for quite a while now. I still like AMNF, but it can get knocked down with the rest of the market.
In 2014, the 3rd Q was the strongest of the year for AMNF. So there is a tough comparable coming up. On the other hand, if it is the strongest Q again this year, more good news on AMNF is heading our way. We just won't know it until the 2nd half of October.
One other thing to think about: I believe it has been nearly a year since the last dividend raise. It's possible they will raise it again soon, since the company has been doing quite well. I don't think they really need to, the company pays out a pretty healthy percentage now. Still it would be nice and supportive of the stock assuming business is still good.
Which reminds me: I'm seeing big companies report rather disappointing results, yet they announce multi-billion $ buybacks to support the stock. Bad strategy. It's not good for shareholders in the long term to squander their cash buying back shares when they are overpriced.
If AMNF's fundamentals really aren't deteriorating (no indication of that from the company so far) and yet AMNF goes through a technically weak period, maybe the company will buy some shares back when they are a bargain. That would be a smart thing for the company to do and good for us shareholders in the long term.
AI
