News and Share PriceI am now convinced that AVO is being manipulated by one or more investment houses. I am not suggesting that there is naked shorting which is illegal although that does happen. Rather, I think a house will look for a stock that may have some potential issues even if they are not of significance; management turnover, commitment to growing the business over profitability, personality issues..The company must not be a high volume trader. The next step is discredit management and the business plan during and after company conference calls and in analysts' reports. Next comes a concerted effort to drive the price down after a conference call or a negative report. Shares currently held are dumped and selling short begins.
Most shareholders are impacted by the 'experts' opinions as well as the drop in share price caused by the house selling so they head for the exits causing a stampede. The house slowly buys back stock but not enough to change the direction of the share price. Once the selling is becoming exhausted the house will scramble to completely refill their portfolio. The panic has shaken out the weak hands and the natural price direction is now up. The house, at all cost, must not let the stock gain upward momentum when they are on the wrong side of the trade as I suspect they were when the sale announcement was made.
I am comfortable with my overweight position in AVO, particularly with the soon to be improved balance sheet. I expect selling to abate and for the price to start to climb in the next couple of days.
Ed, the old guy.