Re: After the dust settles in 3 weeks
in response to
by
posted on
Oct 22, 2015 04:46PM
Just my opinion but I think there may be a few reasons why investors who are considering RVX are waiting to jump in.
1) Some will be waiting for new analyst reports to validate their interest. Even though many of us consider Eastern, Hepalink and the KOL's who have recently joined the broader RVX team to be perhaps the best source of validation there are still many people (I know some) who view top tier analysts as the best source of independant assesment. Hopefully we are getting some top analyst coverage soon. It is well known that many investors have been badly burned by this stock, it will make others tread carefully.
2)Some new investors are probably waiting to see how low the price may go during tax loss season. If you look at a price/vol chart there was huge (for this stock) amounts of shares traded in the spring, well above the current price. The bulk of what was traded since was traded above current price as well. I know for me I couldn't resist buying a little bit today once it got below $1.50 but I'm thinking there will still be an opportunity to buy more cheaper once we get into tax loss selling. I think there may even be investors who still want to hold this stock but can sell it now and capture a loss, contribute to the downward pressure, wait their 30 days and buy it back cheaper when tax loss is in full swing. It is a very nice strategy when it works.
3)Somewhat further to 2, any large fund that is interested in RVX (if there are any) may wait to see how low the share price may go. If they were going to make a large at the market investment they would realize it will move the price significantly and since there is no apparent hurry to get in they may as well start the process from as low a point as possible.
4)Further to 3, I'm quite sure some investors feel that due to the considerable time between now and BetOnMace concluding that they can comfortably sit back and see how this plays out. I for one believe that there are some nearer term events that will move this stock and that the stock is undervalued at the present time. Apparently those of us who share that opinion are currently the few not the many.