I like today's action
To see us bounce back like we did today, while still trading 1.3 million shares is encouraging. While there was a sell off from the mid four dollar range, the money hasn't left the vicinity.
What could be causing this run-up? I know that in my case, I did some dot connecting of the HAP conference approaching with a couple of presentations to investor conferences, and hoped this would be a perfect time to announce real progress with the government- as in a signed deal. Yet,as I think about it, we may not get a signed deal out of the government. Dell carries everything the government needs, including ERAS, and the government money may just flow to Dell, and then to us. There may be no requirement to PR it if it goes through Dell, and the government may also want to keep it quiet. So, while I will be ecstatic to see a government PR, we may just see a sudden surge in Dell numbers.
The thing that I think is causing the run-up is that a deal has been signed somewhere- maybe the government did order a bunch of Wave product through Dell, and the employees at places like General Dynamics, Northrup Grumman, Dell, government IT people, and others may be hurrying to buy before the news becomes more public. We haven't seen a large enough increase in institutional ownership to account for the increase in volume, and I think most institutions will not buy large amounts, yet anyway. Maybe GM employees are buying in. Those kinds of companies have enough high level executives who would be in the know and have the money to buy 50,000 shares. So that is my call on the increased volume, and why it has remained above a million shares despite no news and a sell-off. If this is the case, that is good news, because these folks will be around for a good long while, whether they trade in and out or hold long.
It's not just Wavoids- the Wavoid pattern is to buy in expectation of news, then if news doesn't happen, to sell off and then the volume dries up-and that is the tell, the volume hasn't dried up. I do think that some of the sell off came from Wavoids who margined during the spike and then got forced to sell to cover, which accelerated the fall in price. I don't think traders would have let the price fall so fast if they were the only ones trying to sell.
AI
