I believe that most of the up volume price action on the Friday 40 % move, on a day that was very poor for most stocks ,was caused by significant new investors who believe there is a good reason to own the stock now. As there is a both a buyer and a seller for a trade, I also believe that the sellers on Friday were mostly long time owners who finally got to see the stock trade a 3-5 year highs and sold to the new investors. The exception and kudos to AMA who put his money where his mouth was and bought at a dime, possibly a future yearly low, garnering a fast 40% paper profit.
Since there was no published news on the stock, a clue to the rise may be inferred from some other cause such as (1) the Level 2 action and or (2) some front running of news that will soon be announced and or (3) possibly some sort of merger or deal for a new plant or someone taking a position for a takeover of the company
Regarding Level 2, first PUMA became a new Mm followed by ASCAM later in the day. It is likely that these MMs were the catalyst for the 5 fold increase in daily volume. The last time we has a new MM was JANE and the stock did poorly when she was making a market.
Regarding possible new news, Friday, October 20 was the PDUFA date for the acceptance of a new ANDA by the Sec and Elite has up to three business days to file the material event and news with the FDA and shareholders.
Regarding a possible merger or deal, we know that the future is so good that NH anticipates the company will need to increase the plant capacity for both current and new products.
Regarding possible takeover, the poison pill will expire on November 15 and will not be renewed.
Expect some of these questions will be answered around 8am tomorrow before the open.
I'm staying long and strong.
