AI
Thursday, July 10, 2008 10:17:13 AM
i think we can view these larger players much as we would ourselves. if we were to buy shares for .70 (arguably at a bit of a discount to FMV) we'd be serious about sticking to our investment thesis and our DD. we'd hang on tight and realize a significant return on our investments.
i think these folks will probably hold for DR's $2.50 target (or higher) and they'll pay long term capital gains on the profits.
another thing to consider is how this shift will affect bid support. let's say an incoming institutional investor wants to accumulate a 5M share position. they might load it 100K to 500K shares at a time. get a few of them in there vying for shares, at various price levels, and that puts a pretty strong floor under the stock.
this said, i figure most of them will trade very large blocks after hours, among themselves, so this won't impact market prices at all. jmho.
i think these folks will probably hold for DR's $2.50 target (or higher) and they'll pay long term capital gains on the profits.
another thing to consider is how this shift will affect bid support. let's say an incoming institutional investor wants to accumulate a 5M share position. they might load it 100K to 500K shares at a time. get a few of them in there vying for shares, at various price levels, and that puts a pretty strong floor under the stock.
this said, i figure most of them will trade very large blocks after hours, among themselves, so this won't impact market prices at all. jmho.
