The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Tomorrow there will be quite a bit of price target adjustments from analysts who tend to be smarter than the gamblers. We will see if that wakes people up
 
I made the mistake of using last weeks pattern(gap down and stock closes at lows after selling off the whole day) to predict today's action. Today you had the dips being bought, I suspect the CEO is right that the ownership is now in different type of hands(In the public float)

From my experience these gambler types tend to create big rallies that fizzle out and the stock drifts down gradually. Perhaps through the week with no buyout these gamblers will get tired and the stock will drift down to a level it can actually attract other types of investors who are looking at valuation and things like that
 
Gasparino
"FBN: Blackstone on verge of buying KCG/taking private for $1.2b before trading screwup; Jeff earned $20m using BX diligence on current deal"

So who is going to buy now?
 
Quote from Chuck Krug:

Interative had no KCG shorts all day long
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Yes that was pretty weird. They had 800,000 shares, someone took almost everything pre-market
 
Quote from zdreg:

the firm will survive and perhaps thrive since it is based upon screwing the public investor. no wonder firms like scott trade and ameritrade deal with them vanguard is a minor surprise.

"The first pre-market is too illiquid and not likely to be the equilibrium price"

not necessarily. it was close enough today with the trading stopping at 2.76 at 8:04 which is considerable distance from 9:am. by the way the 2nd session session by most definitions starts at 8am not 9am.
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You are right, I forgot to subtract 1 from my local time. Do you know which ECNs open up that lead to this liquidity burst at 8am?
 
Quote from Daal:

You are right, I forgot to subtract 1 from my local time. Do you know which ECNs open up that lead to this liquidity burst at 8am?
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(direct) edge.
bats exchange
 
"Knight Capital downgraded to Underperform from Market Perform at Keefe Bruyette
Keefe Bruyette downgraded Knight Capital to Underperform citing valuation following the company's $400M investment. The firm has a $2.50 price target for shares."

I'm treating KCG as a promoted stock at this point. You have essentially these gamblers keeping the shares at unsustainable levels. Its just that in this case they did it naturally instead of being the result of spam or a promoter. Stock is likely to drift down towards it more sustainable level over the course of some days/weeks.
 
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