Savvy Trades and Investments

[southacresdave]

SCKT...Perhaps the tender is there to support the stock while insiders sell out soon?? Their window of opportunity comes up in 3 days and last then for 30 days. They can't do the tender, but they can do the open market. They have to realize that the stock is dropping post-tender. In the cc call it sure sounded like Q1 won't have much in large orders either. $1M last year and how much this year? Deja vu I think.

The last time they put out a quarter the market didn't like, the stock went from $3.75 to $2.40. Ironically, they actually earned like 8 cents/share that quarter. It was just that scanner sales were flat because, guess what, the year before had a large order and then a year later it didn't. The old Somo sales is what made them grow. They didn't have that now.

Live by the large order. Die by it.

I can see algorithms and computers looking to do an arbitrage and buying now and selling in the tender. The catch is that the tender is only 1.2M shares. I think there will be more investors who want that price right now (between $3.75 and $4.25) than can be bought by the company.