On topic: Management PR strategy
Based on the content and timing of their recent PRs, LPH may have intentionally tried to limit short term daytrading opportunities by the way they have handled their acquisition announcement and recent events -- I applaud these efforts, as continuing these policies should insert some stability into the sentiment and therefore stability in PPS.
For example, on September 24, the news of the Huajie acquisition was given in a pre-announcement which stated merely that the acquisition would close by end of the month. This information by itself was not proof of the event closing, so that daytraders could not buy in just for a quick pop. Then, when the final signing of the acquisition was announced September 27, daytraders believed the news had already partially been baked into price and sentiment, and were again thwarted from buying and selling the pop. The next event, announcement of operations startup and first sales, was announced in a sort of low-key way via a live conference October 11 in San Francisco, and since there was no written PR newsrelease the next morning, this news did not create a big bang so the stock price once again crept up too slowly for daytraders to sell the pop. Even before the pre-announcement, daytraders were feeling skeptical and remained on the sidelines because of the way the mid-September earnings conference call stated the acquisition would close by the end of the year and that LPH could not rule out a combination of bank and/or equity financing in the course of startup. Again, this kept daytraders away.
So because of these efforts, daytraders did not buy large positions that they would then sell after the news...and therefore the price of LPH did not suddenly fade as they took their profits a day or two later. LPH management is starting to wise up and is adopting a new strategy - they are proving to investors their credibility and shareholder friendliness, meanwhile minimizing the opportunities for day traders to jump in and short-term play with stock prices. In the long run this is good for the stock because investors will be less fearful of selloffs originating from daytraders, and there will be a greater percentage of long term investors and a small proportion of short term traders holding the outstanding shares in the public float. LPH may be turning into what may be someday regarded as a textbook example of a turnaround stock.
AI
