Tophat, the whole point of the saying of "buy on rumor, sell on news" is that one expects the PPS to increase on the rumor of impending news, and may sell when the news comes out to take those profits. One may not see an increase on the news unless it is even more spectacular than expected, since the news is already priced into the stock. Therefore, waiting for news and then buying may not be the best time.
In this case, there was no increase in PPS on any of the recent news. Therefore, the above maxim doesn't really apply. People don't "sell on news" just because there is news, they sell to take advantage of the rise in PPS that would have occurred prior to the news.
People don't just randomly sell on news and take a loss. They buy on a perceived increase of PPS leading up to that news and sell as it goes higher.
I love these posts of "must be people selling on news". That's not in my opinions what is happening here. We've seen plenty of selling particularly by the market maker FANC all the way on the buildup to news.
A better maxim might be: Companies and individuals that have new shares to sell into the market to dilute the stock may take the opportunity of impending and realized news to sell that stock into the news. Which, in this case, if you look at the volume on the latest news day, prevented any rise in PPS as there was plenty of buying. Unfortunately there seems to have been plenty more shares available to sell. And those were certainly not shares being sold to take a profit on that news, as the PPS was at a six month low.
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