Replies to post #1376 on Simple TA by Wizetradr

[bushwacker]

ARDX - This is one to stay away from completely. Here's a case where normal market activity does not apply. When the merger was announced, the market value of the shares was set at $25 by Watson Phar. (WPI). By all accounts, it should have gapped up to $25, but then a funny thing happened. There were shareholders willing to sell at $24.25, so that's where the specialist opened the market. Since then the price has flatlined and that's where it will stay until the merger is completed and ADRX no longer exists. The reason the CMF dropped as the price gapped up is because this is not a normal market of supply and demand. The price gapped up because Watson Phar. and their specialist set a higher price, but there is absolutely no buying pressure at all. There's only selling pressure, apparently by some shareholders who had just as well take $24+, clear out and move on, therefore the drop in the CMF.
Short it? I doubt that you could even borrow shares, but even if you could, you would have to buy them back at $25. Not a good move. Right now the MM's, specialist and Watson are soaking up any shares that anyone is willing to sell at this level, knowing that whenever the merger is finalized, they'll get $25 per share for all that they hold.