Today, as well as Friday, there was some rather significant volume (over 4 times the average daily volume). There was also some rather significant sells/buys. Today there was a 27.3 million share single transaction late in the day. Many longs (a dwindling group now) are frustrated, and venting their frustration on message boards. When people are at a high level of frustration, there is a tendency to think irrationally.
Folks… even though someone (maybe even Steven Samblis as some suspect) may have sold that block (and perhaps others recently)… someone bought them ! WHO bought them ??? WHY did they buy them ???
It is just beyond rational thinking to think the buyer bought them to lose money. Its also beyond rational thinking to think someone bought them to short the stock. Who in their right mind would short a stock selling for this low of a PPS ??? There are thousands of other stocks that could be shorted that offer far more potential to make money shorting them than PNCH. The risk/reward justification math just doesn’t work out. Rational thinking suggests someone bought the shares with the intent to make money when the stock recovers, via news or launch.
Folks, we feel someone is loading up leading up to the launch, or on perhaps speculation that significant news will soon be released. Could we be wrong… of course. However, just keep asking yourself WHY would someone buy that many shares? Of course there are those that simply look at the sell side of the transaction and claim dumping, however if you have been trading stocks from more than a minute, you know that there can not be a sell without a buyer !
Now… is Steven Samblis selling shares ??? Many think he is. However there is no supporting evidence to support such. Again, thinking rationally, why would Samblis be selling at this low PPS ? Rational thinking would support him BUYING at this low PPS. There are those that think he owns a billion shares, and lets just say for argument sake he does… even if he sold every last share, that would net him a little over a million dollars. Do you think he would actually sell all his shares ??? You may remember, in the last Q report he created provisions to guarantee that he owned, and maintained a controlling number of shares. If he sold a billion shares, he would actually be selling the ownership of the business. If you believe Samblis is selling the company, then it follows that you can believe he is selling all his shares. However, if you believe he is working to turn around the detrimental effect Joseph Collins actions had on his company, than it follows that he is not selling his shares.
Perhaps Samblis is diluting ? Maybe, could be… perhaps even likely. However, even if he is selling in lieu of spending what little cash he has on hand in order to pay for good and/or services rendered, that kind of selling is not bad for business. Its what is called a necessary evil. He needs to grow the business, with little or no cash, so he uses the next best currency… stock. A growing business benefits ALL shareholders.
As an investor you need to do your own research, and make a decision that is best for you. Many longs are down, and many are down big. If an investor is down big, does it make any sense to sell out now ? Or… does it make any sense to start bashing the stock if you are still invested in it ? Take some time off and reevaluate your investment with a non-frustrated mind. Decisions to invest, or divest… should be made on FACTS, not unsubstantiated opinions of very frustrated investors.