Education with ABAT
A couple of days ago shares of ABAT dropped 40% based on a posting on Seeking Alpha. (That drop cost me 40 CAPS points.) I thought that was a pretty flimsy reason for such a dramatic drop, so I picked up a few shares at $2.03. I also started following the Yahoo message boards for the stock since MF's board for ABAT is silent.
Well, besides the Yahoo boards being a seething pool of insanity, there also seemed to be a few rational voices picking the SA story apart. On the 31st, ABAT opened sharply down at $1.60ish but then jumped and spent the rest of the day just below $2.00. Today it opened at $1.86 spiked to $2.00 briefly and it is too early to see where it will end up for the day (right now at $1.89, close to its opening).
Now, I'm not a day trader, but there seems like a LOT of money to be made here and a lot of money changing hands. The volume for the last few days is WAY above the average for the past year - way, way above! I'm a babe in the woods when it comes to this kind of stuff, but to my eye it looks like automated systems are putting in low bids at opening, turning around and offering the shares at $0.10 to $0.20 higher and reaping the profit. Add in shorts and other machinations I don't understand and this seems like a place money is being made out of thin air. A similar scenario played out recently with YONG, a negative article was posted, the stock dropped, then recovered most of its price.
As a wee, tiny, little fish in the investing ocean I can't begin to fathom the powers at work. I feel like a bottom feeding minnow while sharks hunt seals somewhere way up the food chain. I can try to glean a few of the scraps that fall and hope to grow to be a fat happy little minnow - and not get crushed by something they drop.