RE:Why does the SP keep falling? Good rational analysis, sans immotions. Great job.
valentep1 wrote: Take a look a the chart.
This stock was trading at $20, exactly 30 days ago. Which means there are many investors who made entry at these levels $18-$20. There are also many nvestors who bought on the hype of the leaked negotiations with Altria. No deal has been announced, and there is disappointment around that. Therefore negative setiment surrounding. What you have is an ideal short seller position developing.
Negative setiment, coupled with the fact that there are many investors with an high entry point. As we all know stock prices are goverened by human emoition. People who bought at the $20 level now have huge paper losses on their investments, and fear is futher losses. This is the ideal time to take a short position on a stock. That is what is happening. People are selling on fear and the shorts are capitalizing.
What is going to happen is this stock will reach a level possibly $12 or even less, and then the Bulls will start to buy the stock again and regain control. The SP will go up, and then stabalize. Hopefully it will start another up trend.
The shorts want you to believe that there is something wrong with the company, that smart money is fleeing. This is total bullshit and only serves to heighten fear and fuel the capitualtion and further selling.
One of 2 things will happen. Either we get the big news (catlayst) everyone here is waiting for and the stock will jump soon or we will hit $12.35 and start to rebound from there.
If your investor here at $18-$20. Turn off the computer and turn it back on in a month, Everything is fine.