NYSEAM:SVLC - Post by User
Post by
5F09Aon Oct 16, 2012 12:06pm
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Post# 20488871
Bought Deal
Bought Deal I hate when the manipulation word gets used....
The day to day movement in a stocks has everything to do with the current supply/demand of shares and little to do with the underlying fundamentals. Today we even got good news and it doesn't matter. What has changed is there are more shares now available for sale than there is demand for those shares. Very different than a couple weeks ago when our price was rising. $2.55 is not the floor in this stock in the short term, it is likely the cap.
Dundee scooped the other Dealers by taking no warrants on the BD. Those Dealers are probably a little upset with SVL and have a hate on for Dundee because they scooped the deal. They are going to make it as hard as they possibly can for Dundee to place the shares. They would love to see Dundee take a hit for pricing the deal too aggressively. This isn't manipulation, it is just a basic understanding of supply/demand.
There are currently 13 million new shares for sale, and price action would suggest there isn't enough demand for them in the short term. The price will not go up materially until demand for shares once again exceeds supply. You call it manipulation, I call it Econ 101.