This post is my analysis of what has and still is going on with JBII - the stock - as differentiated from the company. No one should trade on it without first studying the factual data presented here and coming to their own conclusions.
I believe the chart below marks some significant events.
I believe someone expected the Wells notice and shorted at $4, providing liquidity that was not there in order to keep the stock from breaking out of the $4 range. Above the low $4 range JBII appears to have "blue skies" and I have posted this several times.
The red arrow marks the day the Wells Notice was actually issued. I believe that someone with insider knowledge shorted as much as they could on that day to drive the price down. Note that after that day the A/D line actually went up. I do not believe it is possible for anyone at the company to have such insider knowledge at this time, so I believe the SEC is the only possible source.
The original shorts may have tried to cover on the 17th and 18th but failed due to the fact that retail was buying, not selling. It is also possible that retail shorts came in at that time and the original shorts covered with their shares, but I believe the relatively low volume makes this improbable, but retail shorting could have tipped the balance to create the threshold situation. If you count back from the 26th, the 18th is the day shorting became "excessive".
The second gold arrow marks the 21st. Only the volume on 12/16/10 exceeded the volume on that day. On that day the stock was gapped down big time, but solid buying stepped in and there was no run for the exits by stockholders. The candlestick for that day is called a "long legged doji" and is an indicator of conflict between bulls and bears.
The third gold arrow marks the 26th, the day that the first "investigation" for a lawsuit was announced. Despite the fact that this posed no immediate threat to the JBI Inc. or its rapid growth, the stock showed a regular controlled walkdown on that day (see intraday chart below). It was also the day that the stock showed up on the threshold list.
I have created two PDF's showing intraday market action and the "raw data" provided to investors by TDA Ameritrade. This "raw data" is not chart data as I have logically shown that this could not be true:
If you look at my 7/21 pdf of screen shots, you will see RAJA sitting with 10,000 at the ask. on 7/29 UBSS showed up with 10,000 as the stock turned up.
In both sets of screen shots you will see AABA straddling, and giving what I believe is some sort of a signal with the 600 on the bid, ask or both. No other MM keeps showing up with 600 positions consistently although do pop up occasionally, perhaps a relocation of the signal or a response. There were numerous 100, 500, and 600 trades on the 21st which caught my attention and caused me to start watching for the 600 shares on bid and ask. On the 29th there were little or no trades in that amount, but when the stock started moving up I noticed the 600 "signal" again and started capturing screen shots.
I believe this information shows convincingly that whoever was manipulating the stock on 7/21 was still manipulating it yesterday. This is only when I started noticing these patterns, I believe they were probably there on the 14th or below but I just didn't notice them.
The A/D line continues to climb, and I think what we have here is a battle between shorts and longs to see who can grab the most shares.
I don't know what it will take to end this battle, but if the stock breaks the $2 barrier on significant volume* I think it will be a quick trip back to $3 and quite possibly $4 as the shorts scramble for the exits.
*see the darker blue volume by price indicator on the first chart
AI
