Friday, October 22, 2010

LiveDeal Surges 216% Because Of........ Nothing!

I do take a peep at market movers occasionally.

On CNBC: http://www.cnbc.com/id/15839121/site/14081545/




WOW! LIVE surged 216.7%!!!!

Then I saw the one year chart.



Nice one day surge!

This how the stock traded 216%


From a day low of 4.56 to a shocking high of 22.25 before closing at 14.00!!!

And the bulk of the incredible trade came in the last hour.

LOL! LOL! LOL!

Now this is what you call a stock market!

Can you repeat after me? :=)

Now this is what you call a stock market! Now this is what you call a stock market!

No wonder they can make films (and make money) based on the stock markets!

ROFLOL!

Any hot news?

Then I ask my Auntie Google for some news on LiveDeal.

My answer?

I saw this: LiveDeal (LIVE) Surges On... Nothing


Last month: LiveDeal Regains Compliance with Rules for Continued Listing on NASDAQ Capital Market

  • LAS VEGAS--(BUSINESS WIRE)--LiveDeal, Inc. (NASDAQ: LIVED - News), a provider of Internet marketing services for small businesses, announced today that it has regained compliance with the $1.00 per share minimum bid price requirement set forth in the rules for continued listing of the company’s common stock on the NASDAQ Capital Market.

    As previously disclosed, on April 8, 2010, LiveDeal received notice from NASDAQ that the bid price of its common stock had fallen below $1.00 for 30 consecutive business days and was, therefore, not in compliance with NASDAQ Listing Rule 5550(a)(2). LiveDeal was provided a 180-day grace period, scheduled to expire on October 5, 2010, to regain compliance by posting a closing bid price of $1.00 per share or higher for a minimum of 10 consecutive business days. The company implemented a 1-for-10 reverse stock split, which became effective on September 7, 2010, to regain compliance. On September 21, 2010, NASDAQ notified LiveDeal that the company had regained compliance with Listing Rule 5550(a)(2) by posting a closing bid price per share of $1.00 or greater from September 7, 2010 to September 20, 2010. NASDAQ also confirmed that the matter is now closed.

I them peeped into LiveDeal's income statement: http://finance.yahoo.com/q/is?s=live

Losing money! No wonder the stock traded below 1 for 30 consecutive days. A 1-10 reverse stock split too! LOL!

LOL! Then I saw ZH:LiveDeal Flash Smash Sends Stock Up 365%, Nukes Shorts

ZH is calling it a flash smash!

ROFLOL!

But the details of how the stock shot up... is rather shocking! (do check out the screen shots provided on ZH)

  • Today's flash smash comes courtesy of microcap company LiveDeal (Nasdaq: LIVE, market cap around $3 MM) where thanks to a rogue (presumably - there are no news in the name) algorithm the stock shoots up from an opening price of $4.79 all that way to $22.25 in about one minute: a gain of 365%, which is too rich even for KKR's new prop group. And no, this is not a fat finger as the QR screen below shows: the algo was busted enough to lift every single offer in a row - there were virtually no downticks for the span of over 15 seconds. The result: 1,679 shorts end up with an almost 400% loss (one of the benefits of unlimited downside shorting). And as the stock has very little liquidity it is very likely that assorted brokers took matters into their own hands and force covered all those who were underwater and losing substantially. And the cherry on top: not a single trade has been busted. In other words, exchanges are more than happy to unwind trades immediately when an algo loses money, but when an algo creates thousands of forced buy ins and retail investors are left with huge losses, then no luck on the DK. What is scariest is that HFT has now gone microcap: with Apple, Amazon, BofA and Netflix bled dry, it is about time the robotic scalping crew found new pastures.

Ahem... the following statement by ZH:

  • And the cherry on top: not a single trade has been busted. In other words, exchanges are more than happy to unwind trades immediately when an algo loses money, but when an algo creates thousands of forced buy ins and retail investors are left with huge losses,

On Tuesday, the following was posted: Another Day Another Flash Crash, 10% In 8 Seconds!

That crash was cancelled. "The NYSE Euronext (NYX) said Monday it had busted — i.e. canceled — trades in the SPDR S&P 500 ETF (SPY). "

Now this is what you call a stock market!!!

!!!!

1 comments:

James said...

Check out also US bio stocks... big gains upon FDA approval.