RE:$1.50 WallI have a different take on the price hovering in and around $1.50.
Based on all the hype with PHM, I think a lot of daytraders loaded up on this stock, expecting a big spike on an announcement like this, so they could sell into the spike and make quick coin.
But, truth be told, most institutional players, who hold small caps like PHM, have undoubtedly established their positions earlier this year and late last year (when Dalsin and company were on their road shows). So, no incremental buying from them.
Retail investors have been scared off by the volatility in this stock, as of late; so while there was probably a bit of retail buying yesterday, it wasn't enough to satisfy the day-traders pump and dump wet dreams.
So, here we are today, and poor day-trader is left holding a stock that is probably fairly valued around $1.50, and a day-trader is not prepared to wait 12-months for a gain in this stock.... that's not how a day-trader makes money (which is totally understandable).
As a result, day-trader must sell and move on.
The interesting thing, is as the day-traders sell off, which should be pushing the price down (as there are more sellers than buyers), it's interesting to note that the price of PHM doesn't seem to want to fall much below $1.45 / $1.46, before one sees buyers starting to come back in (which supports the theory of a fair market value around $1.50).
Poor day-traders... can't win them all, but PHM was already a bit of an overcrowded trade, (as every day, some weenie calls in to BNN asking about the stock), and since PHM was overcrowded going into this announcement, the resulting "pop" sort of just fizzled.
I'm long PHM, having held this for over a year now, and fully expect to be holding a year from now; but, nevertheless, it's interesting to watch/read the machinations, twists and contortions of all the get rich quick newbies who've flooded onto this bulletin board.
While there's still money to be made with PHM, some earlier posters are right in saying that the "easy" money has been made, (insofar as this probably won't be an 8-bagger over the next 12 months, as it has been over the past 12 months).
Either way, good luck to all!
C