Today’s Volume — And Price Action — Explained

When the NASDAQ OTC markets opened trading this morning, Mattersight’s  SEC Form S-3 resale registration statement was effective. It actually was declared effective by the SEC, after the markets closed on Wednesday night. So today’s higher volume is likely at least some of those shares, finding new homes.

And the steady down-beat, in MATR’s per share pricing, is likely at least in part the excess supply such an event unleashes on an otherwise rather thinly traded stock.

But to be sure, most of the recent action is likely market dread, over Q1 2017’s impending per share GAAP losses from operations. I’m guessing like $0.20 per share — and it is really just a guess. But I do think that Lake Street’s ($0.15) of GAAP losses is likely far too optimistic.

We will know in about ten days.

 

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3 thoughts on “Today’s Volume — And Price Action — Explained”

  1. I have no knowledge of what MATR will do in Q1, though -16 cents/share wouldn’t surprise me.

    More stock, more trading, Q1 results, changing agendas, it’s all a smoke screen for the really big event – corporate income tax rate going from 35% to 15% which will erode the loss carry forward, the company’s biggest asset. In a rational world, the stock price would react accordingly. This is not a rational world. The investors are not rational. Management is not rational.

    1. Thanks, man — I agree. That said, I also suppose it is possible that — just like the Muslim Ban — the market doesn’t believe 45 can deliver a tax cut package. Just sayin’ — grin!

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