How do you get to the point of seeing that anyone has bought and is holding 7 million shares ?
What I see in the charts a lot of shares being dumped in the last half of December... with that pattern continuing on declining money flow into January. There's a big red gash of "distribution"... and no compensating accumulation occurring until it began dropping lower in April... and by then it was trading insignificant volume.
Look at the monthly charts. A big red candle with 11 million shares in December... paired with the drop from over $5 to under $2. Then, in January, another big red candle, again with 11 million shares in volume... showing a churn between $1.80 and $1.20. Then, in February, another big red candle, 7.8 million shares, with a churn between $1.70 and $0.70. Then, volume in March was half February, while it stuck near $1, and volume in April was half that in March even as it resumed the decline...
The outstanding is only 7 million shares... so (given that 11+11+7.8= 28.8) it turned over more than 4 times in the three months of December, January and February...
Looks like a routine sort of "deflation" trade in a failing stock, to me, without there being any evidence I can see that anyone has found it useful to try to accumulate a meaningful position ?
I see "distribution" in the charts... and that's probably what has really happened, too... a distribution of a more concentrated position held by institutions... transferring those shares from institutions to a far more diffuse group of smaller bagholders ?
If it were insiders or debt holders who bought up the entire outstanding... we'd have to know about it. Anyone owning more than 700K would have to have filed showing a 10% interest ?
The leveraged model they've adopted works great in generating cash and profits when the market supports their business... but, when it doesn't... that leverage cuts both ways.
I think that's all we see... smart money getting out of the way before the realized risk in the leverage cut through bone...
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AI
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