After confirming with AUMN management that (1) there was no news released, (2) no public Insider Sales, and (3) no analytical downgrade this morning, I can only conclude the following from the illogical, irrational trading this morning:
As of 12:00 CST, AUMN has made a 180 degree turn and is unch at $9.35 on 300M shares.
With gold/silver prices fairly stable over the past 1-2 hours, I can only ascertain three possibilities to this bizarre trading:
1. An ignorant institutional trader bailing the stock recklessly—he won’t be employed long!
2. A brokerage firm haphazardly liquidating a margin call of an institutional client
3. A short protecting the already-existing 2.3 million share short position and preventing the stock from closing above a technical level of 9.40, as well as an effort to push it below the benchmark $9 level. Then, buying/covering the new shorts placed earlier once the stock began to recover from the $8.78 low. If this is the case, it has only required 50,000 shares to fully recover the loss and the short might be even further exposed.
Silverbull50
