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Re: jaber jaws post# 71725

Thursday, 10/18/2007 6:08:26 PM

Thursday, October 18, 2007 6:08:26 PM

Post# of 82595
We've had news that seems to have triggered this recent upswing in activity, for instance the DNA Direct partnership. It was apparently only in the slides, not verbally mentioned in the presentation, which surprises me. Other partnership announcements and developments also factor in.

One thing is, we have to understand the behavior of this stock at this point in time. With usually low volume, it doesn't have anything to hold it up. When someone decides to buy in (say, a million shares or more,) that one person can drive the price up significantly (my broker explained the mechanics of that to me, such a large purchase should be done carefully to avoid driving up your own purchase prices.) Then after that one person has bought, the price tends to settle down (at least briefly) and some people get all disappointed. Self-fulfilling prophecy and "gold rush" speculation, as well as the MMs, all feed into this. In the longer term, with the good news sinking in, plus more good news and increasing revenues, we can say goodbye to this sort of pattern.