I have a stock where there is constantly stock offered at $13.95, this has been going on for a couple of weeks, since July 1, actually. At the same time, volume has dried up and now the stock trades within a 10c range. (Stock is DTEA). So my question is why volume has dried up. Is it because a) traders know stock won't go over $13.95 or b) traders are waiting for block at $13.95 to get cleared out or c) block will get cleared out on a Friday and then stock will close on a weekly high or d) shorts are putting a lid on the stock at $13.95, collapse inevitable or e) demand has dried up, stock will collapse as momentum has stalled or f) don't overthink it.
Big block at the offer
- Thread starter billyjoerob
- Start date
It's not really a poll, more a rhetorical question.
if it is a rhetorical question then you should not be expecting responses.
I would say rather than volume drying up, the lack of volume is normal and the increase in volume was the anomaly.
It looks like 12.00 was a more significant level, as it held for a couple months and then broke through on a huge volume spike.
I think you've done a good job identifying another significant level in this stock at 13.95.
The next step is determining
- if you'll trade it
- which way
- what timeframe
Good luck!
It looks like 12.00 was a more significant level, as it held for a couple months and then broke through on a huge volume spike.
I think you've done a good job identifying another significant level in this stock at 13.95.
The next step is determining
- if you'll trade it
- which way
- what timeframe
Good luck!
Float is only 6 million, 7 million with the 1 million shorts, so pretty small float. But even so 12,000 shares a day is . . . really slow.
I think I figured out who is selling. It's not the biggest shareholder, FMR, because they just filed their report and actually added last quarter. It's not the shorts, because they've been covering. It's not the other big shareholders (not the two that own 13% and 51% of the shares), because they would have to file reports as 13G holders. It's the former CEO and founder, David Segal (the David in David's Tea) who resigned in March and has 1 million shares, below the 13G threshold. He sold 300,000 shares (out of 1.3M) between December 31 and April 27 so if he is still selling (likely, all of his net worth is probably in DTEA) then he is the seller at $13.95. With so few big shareholders, it's a process of elimination.
Nice detective work. With a float this small on a thinly traded stock this kind of research can pay off. You may be the only person who both noticed this and did the digging to figure out what was going on. Of course you were generous enough to share with us all, but if you found this one you'll find others.