2 possible reasons for a low priceIt has been very apparent to investors that CJ is not moving with the price of Oil.
There are 2 possibilities:
- The Market Maker is really pissed off at the Day Traders taking his money (Me included taking his money) CJ has become very predictable during the morning when he comes in with a big Block Trade of over 50K shares to short the stock. We know the stock will go down so that he can cover later during the session. This has been going on for several weeks. The daily spread has been very minimal to discourage the Day Trader.
- A possible Buyout...A buyer will hire a financial institutions to keep the stock within a specific range (Possible Manipulation) in order to keep the BUY price low. The average closing price for CJ has been $7.08 during the past 20 trading days. It is normal to have an offer with a Premium of 20% to 30% of the average Share price, thus $8.50 to $9.20. Buyout.
There is always a possibility the Institutions will have met their objectives and within 2 days bring up the share pice to $7.75 - $7.90 where it should be today based on the Oil price.
If life was only that easy....
TTFN