Good Morning. 2.3M sh. Same ol' bs. Smaller traders use
the 3 day in/out rule as well as sell on news/pr rule. Illadvised with this stock though. So typical. As soon as the pps this morning started a slight downturn by flippers selling off for their big 80% gain -(35+%)short term tax rate; all other sheep followed. The majority of buy orders the last few days were at
+- 5K,10K,20K share amounts. IMHO, the larger holders kept their position and know what the real upside is for the pps of this stock.
As I have stated prior, no problem with a quick flip on a stock with little or no real revenue potential and just pumped with quick momo. But, with GBDX, the size of the revenue near term is so large comparative to PPS/float size currently. The PR out yesterday was huge in that the only reason for a 2-3 day delay of office opening was an INCREASED demand for smaller diamonds (under 1 CT.). Based on this increased demand from clients, the INCREASE in inventory requirement. This = even much larger revenue than originally anticipated.
GBDX is a wholesaler of diamonds. Increased demand from retailers is significant to projected consumer demand nearterm.
Again, IMHO, shell play with the mgmt. of WWCD merging with GBDX to exploit the new change in the russian law allowing a larger % of exported rough cut diamonds. GBDX has existing strong contracts with top cutters and exporters in Russia to feed this increased demand; and a 17 year base of a successful diamond wholesale business in New York to expand upon.
Enough said. Adding more at these low pps levels. After revenue projections are released, too late.
Best Regards
Not a buy or sell recommendation. My opinion only.
