I'm looking at a stock that closed last Friday at $1.70 and now (11:30a) it's at $2.05. I'm looking at the headlines for that stock and nothing's happened these past few days.
So why would something like this happen?
Thanks.
2007-09-04 04:39:26 · 6 answers · asked by VMI 2 in Business & Finance ➔ Investing
We can try to guess. However, to intelligently discuss it, we would need to know the name of the stock.
2007-09-04 04:52:51 · answer #1 · answered by BIll Q 6 · 0⤊ 1⤋
It would help me more to answer your question if I knew the ticker symbol. Non the the less this is one of my favorite strategies on option-able stocks, to find a week stock that gaps up like that and buying a PUT that's well in the money. Too often they correct and move back down enough to make a good profit. On the other hand if this stock is not option-able but is a week stock you can count on it finding a lower support later on and I view this gap up as a profit taking opportunity. You can always buy back in when it makes it's correction. Look at the volume trading on that position also, heavy volume will be correlated with significant changes too. Inside traders maybe exercising options as well.
2007-09-04 05:10:15 · answer #2 · answered by Barney 6 · 0⤊ 0⤋
A stock in that price range is probably on the pink sheets with a significant gap between the bid (what the market maker will pay) and ask (what you will pay) prices. Many are thinly traded with no sales at all some days (I have a few of those) If it is thinly traded, a day when an investor buys some will close high, is an investor sells, it will close low.
2007-09-04 04:55:01 · answer #3 · answered by Anonymous · 1⤊ 0⤋
A favorable earnings report, news that the company is being acquired in a favorable merger, news that the company's latest drug has been approved by the FDA (if it's a drug stock), news that the company has been cleared of some kind of scandal, etc. etc.
It's quite possible that good news came out for your company. Check a news site such as http://finance.yahoo.com under your company's ticker symbol and see what happened.
2007-09-04 07:30:16 · answer #4 · answered by andrewtrades 2 · 0⤊ 0⤋
A stock that cheap may not have many transactions so one big buyer can change the price if there aren't sellers at that price. It might be a great time to sell.
2007-09-04 04:43:16 · answer #5 · answered by shipwreck 7 · 1⤊ 0⤋
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2007-09-04 05:15:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋