Well, I didn't expect it to come so soon! ABAT hit $3.75 today as the stock price gapped down today on negative U.S. PPI data and other weak economic news. While the stock price recovered and closed near intraday highs I think $3.75 levels will be re-tested and I am concerned the stock might make a run through those levels and head to $3.00.
I have cash going into my trading account (from savings) for such an event. I think that ABAT raised their outstanding shares by 6% but capacity by 165%. Given that the shares were issued near $4.50 and options near $5.50 I am HIGHLY confident re: future potential upside in the shares from today's levels. Nonetheless, I'll be patient and wait.
Why wait? I think the stock market is rolling over and going to re-test lows see in July.
The financials appear to be getting beaten up again on concerns of liquidity again.
Why wait? I think the stock market is rolling over and going to re-test lows see in July.
The financials appear to be getting beaten up again on concerns of liquidity again.
Given all the recent settlements re: auction rate securities and other bond related items such a concern seems logical. I am not sure re: everyone's capitalization but additional bank failures are HIGHLY likely based on what the FDIC has been saying.
Dan Ross
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