Hi Lugan,
It has appeared for some time that a hedge fund or two is using a MM to cap Wave's price. We ended last week with a 300,000 share sell near 3.00 effectively signaling that the resistance there was rock solid. Things that make you go hum.... If you do not wish to think that MM's can work for, in conjunction with, or just as agents for hedge funds to execute their agenda, then I would think there are far more than just Wave examples out there to demonstrate this behavior. Yes, I could have been more explicit, and yes it is entirely possible the MM's are just bystanders in this process. However, I would think their job entails risk as well as it is in their interest to accumulate inventory for the next leg up. They too are exposed when they sometimes go net short during volitile days. I would also assume that the houses from which the MM's are based do in fact have researchers watching this developing space very closely. Nothing like a huge unexpected revenue bearing announcement to ruin their day. The fact that te short position has not unwound itself more than it has signals to me that my suspicions have merit, but I welcome others explanaitons for the odd behavior we have seen lately such as the 20 cent mystery drop after a strong afternoon of buying pressure. After all, does today's close really tell the tale of today's trading?
One more note, won't it be interesting to see if after these options expire that the 300,000 share cap mysteriously dissapears? I would think once we pass Friday these market forces set their targets on higher strike prices out into the future especially given the expectations here that the company is about to enter a significant growth phase.
RC
AI
