Fusion-IO (FIO)

[LeGoose]

What disturbed me today was the huge relative weakness in FIO compared to its peers today.

The 23mm shares coming off lock-up restriction on 12/6 & 12/19 against the current 12.5mm float is not a small event.

The IPO investors are up 75% and the options converts (bought at 65 cents) are profit at any basically any sale price. Blocks of shares are going to be sold over the next few weeks (ala LNKD)

The hedgies know this and are playing the stock like a juvenile tiger that just game across a box turtle. We got thrown around today like a rag doll. They will run it up, short, run it down, cover, repeat.

Institutions are going to be hesitant to invest any significant money until perhaps the spring (after the Feb, 2012 44mil shares come off restriction)

Selling on any strength is my game plan the next few weeks. Prices are going to come down. There are too many IPO participants that are deep in the green right now.

Nice trade selling at near the high today. You'll be able to buy those back much cheaper.