Thanks SJ. The thing that is so important here that everyone keeps forgetting is stocks can take off and run without news. This one already did once. Many times you will see stocks put on meteoric runs to the upside in advance of great follow through numbers and company changing events. In other words, somebody always knows. A lot of times hedge funds are tipped off and even pay good money to "find out the news in advance." If you look at this situation once again from all angles, it's easy to see what is happening here. They ran it, it got clobbered to drive everybody out, now they have all the shares, and it walks away to new highs. Happens all the time in this market.
The company knew back in October they had three things that needed to be accomplished: appease the SEC inquiry on the past Q reports, do the cash for cash conversions into stock, and raise capital to complete their roll outs per the business plan. While many thought the stock took off like it did based on the December report you can be sure it had help. Just like so many companies out there, they used the increase in share price to raise cash and do the placement. No shorting at the top tells you it was part of a bigger plan so no death spiral here.
Once the first of the 144's hit, the market makers got an additional bonus. They knew just like rats through a hole all these 144 contract players would all want their money. Having a 30 day advance notice is a wonderful thing for a market maker. They can team up and just mirror trades back and forth between each other to depress the price as much as possible so these people sell as cheap as possible. Their selling just makes it even weaker. That is why you got such oversold conditions. Just looking at the volume on those 5 mil+ shares hitting the tape, you know they were bought and several market makers are sporting some large inventory now for those two institutions PK said were accumulating.
Suddenly the 144's stop. You already know the management insiders are not selling any shares. Then the march to $2+ starts once the word gets out they want Amex listing. Just like the run for a PP, the same thing happens for listing. The hedges know there will be buyers of the stock and they want to own it beforehand.
All the 144 players will look at all that stock they dumped thinking they were winners for triples and they leave untold huge $$$$$$$$$ on the table. Those that got those 144 shares make easy $$$$$$$. The PP players make great $$$$$$$. Those buying in off the Amex listing make $$$$$$$ and substantiate the run with buy ratings and research reports. The company follows through with nationwide Trump, then Trump advertising the product, then probably Trump on The Apprentice this summer, then new products and flavors, plus the 100000 case mark gets broken warranting a valuation of $2000 per case. It all falls into place perfectly and you see now why PK is pounding the table that the stock is so undervalued. He already knows the end result.
You're looking at yet another JSDA where JDSA was 2 years ago. JSDA may be trying to chase HANS but DKAM is chasing JSDA. Even JSDA is showing you how stocks can run on no additional follow through news. Once they get going you just cannot stop them. And with most of these 144's already gone, there won't be any idiot sellers in the way to stop DKAM either.
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