We can only guess "the why's" of what's been going on these past few days with VHUB's stock decline. Apart from Truthbetoldbeing lots smarter than the rest of us (which is not out of the realm of possibility by any means), here's my attempt at a list of possibilities:
1. On the fundamental side, sales for the first fiscal quarter haven't been disclosed yet, and when there is uncertainty, there is selling, or at least the delay of buying.
2. Also on the fundamental side, we really haven't heard since May how the company is doing in raising new sources of permanent capital (i.e. long term debt and/or equity, not short term loans). Again in the absence of information, pessimism becomes rooted. Remember that the company was still borrowing new money in the previous quarter even as sales were doing very well.
3. On the technical side, the stock broke support levels (the folks who relate more than I do to the various moving averages can chime in some more here).
4. Also on the technical side, we have the opposite risk of what was going on last year, beginning around this time of the year. Last year it was tax-loss selling. Right now it could be the folks who bought in at about a penny to a penny and a half wanting to take their gains and run.
5. Finally there is one possibility which does raise some alarm, namely the Gotama folks who "were inflicted" with shares at 15 cents as a loan-conversion rate of exchange could be selling some of their 4 million shares.
If things go as they usually go, just as I'm writing about the decline, the stock is probably beginning to recover... Seriously, I'd be interested in other folks' ideas.
