Yeah, in normal times “smart money” could play the contrarian and fade an overwhelmingly lopsided sentiment, and catch a bottom or top, or a contra-trend move. That set-up may appear to be the case for CYRX, and for the broader market also, but it's far from the case.
What you fail to take into consideration is for a stock to go up there has to be someone to buy the stock, and for a company to generate and grow revenues, there has to be a need and demand for the company's product, no matter who is shipping and promoting the product. In other words, you can lead a horse to water, but you can't make him drink.
You just witnessed the biggest short-term equity-return-upswing in history on the smallest net amount of positive inflows...also in history.
That tells me 2 things:
1) Investors are out of the market; smart money and dumb money. In the week ended September 1, domestic equity mutual funds saw a near record $9.5 billion in outflows: the biggest one week outflow in 2010 since the $13.4 billion redeemed in the Flash Crash week. First mutual funds, then ETFs, then Hedge Funds. Bloomberg reports that the smartest of the smart money have posted an outflow of $2.9 billion in July, or 0.2% of total assets: the most since January, based on TrimTabs research. "July's number follows an outflow of $2.7 billion in June. More startling is the fact that the market now has a 5 to 1 ratio of HFT to retail participation.
2)The rally is engineered. It is built on nothing but momentum and QE. Goldman and other primary dealers are using billions of brand new printed money, courtesy of the Fed's permanent open market operations to chase whatever stocks they can find. And the administration is making sure that the (pre-election) government data that is released, is positive and facilitates this pursuit.
Which leads us to the inevitable reality...
INVESTORS ARE OUT OF THE EQUITIES MARKET, AND THEY ARE NOT RETURNING ANYTIME SOON!!!
Which means...
There isn’t going to be anyone to buy this stock, especially the kind of investors that can drive share price higher after all the past and yet-to-be dilutions, as evidenced by the paltry rally on the DHL news.
The economy is not recovering. Even the Fed admitted it in it's last Redbook; "Reports from the twelve Federal Reserve Districts suggested continued growth in national economic activity during the reporting period of mid-July through the end of August, but with widespread signs of a deceleration compared with preceding periods."
* Wages and salaries are still down 3.7% from the prior peak;
* Corporate profits are still down 20% from the peak;
* Real GDP is still down 1.3% from the peak;
* Industrial production is still down 7.2% from the peak;
* Employment is still down 5.5% from the peak;
* Retail sales are still down 4.5% from the peak;
* Manufacturing orders are still down 22.1% from the peak;
* Manufacturing shipments are still down 12.5% from the peak;
* Exports are still down 9.2% from the peak;
* Housing starts are still down 63.5% from the peak;
* New home sales are still down 68.9% from the peak;
* Existing home sales are still down 41.2% from the peak;
* Non-residential construction is still down 35.7% from the
peak
And for those who like to cull obscure headlines from mainstream publications, comes 2 very interesting quotes from the WSJ.
“Campbell Soup Co.'s fiscal fourth quarter profit jumped 64%, helped by cost cuts, but the food maker posted weaker sales as its soups battle competition from cheaper meals and lower consumer outlays on groceries.” BTW, this is what happens during deflationary times and depressions. You add a lot more water to the tomato soup. Or you trade down to the no-name brands and hope your kids don’t notice.
More relevant to the issue at hand, is this quote; “Like other drug retailers, Walgreen’s pharmacy department has faced profit pressure, with consumers cutting back on doctor’s visits, opting for generic drugs and buying medications in bulk.” Soup is one thing, but when people start cutting back on their meds, you know things are bad.
These examples are indicative of the extreme austerity measures people are taking, which are are only going to get worse. Try growing a struggling company under those conditions.
News 
Market Data 
Discover 
AI
