ODT has really given me an headache, you see i bought this stock earlier this month at 3.08 $ believing that the 2.75 support would hold but no it crashed right through it following the announcement about a share buyback and the sell off from insiders 17/11-21.
I have stared at this stock for quite some time after that but i finally came up with an answer to why the stock behaves like this.
The short answer is that the company wants to buyback the stocks cheap.
After the announcment that ODT will start to buyback up to 20 million stocks the sell orders from insiders started pouring in.
Here are the sell orders up to date.
11/17/2021 Kevin C Tang CEO Sell 1,287,577 at $2.29 for $2,948,551.33
11/17/2021 Aaron I Davis Director Sell 170,000 at $2.23 for $379,100.00
11/19/2021 Kevin C Tang CEO Sell 365,289 at $1.92 for $701,354.88
11/19/2021 Aaron I Davis Director Sell 30,000 at $1.92 for $57,600.00
11/22/2021 Boxer Capital, Llc Major Shareholder Sell 200,000 at $1.55 for $310,000.00
11/24/2021 Boxer Capital, Llc Major Shareholder Sell 200,000 at $1.57 for $314,000.00
Totalling 4,710,606,21 $
So as you can see, there are alot different dates on the table, that tells me that are trying to manipulate the price even further down, i believe there are some more sell orders from insiders coming up next week. According to Marketbeat the insiders own 48,9% of the company that equals to 30 million $ at this moment. For the price of 4,7 million (a median of between 3-5% of the ownership) from the insiders, the market cap has gone from 125 million to 62 million and thats a real catch for the company when they will buy back the stocks. i have no clue if there are more sells that has been made from the instutional owners yet because they don't have to disclose that information yet.
I am not sure if they can use their new liquidated assets to further buy up the stock supply but if they can do that they will do that on a steep discount.
mabye someone here can answer that question for me?
Other than that the stock will probably see some new lows the upcoming week, that will probably a good buy in spot, ODT will probably see some nice volatility the upcoming months after that
I need to ask something from this community, is there anyway i can see when they start commencing the buyback? will it show in the daily volume or is that information disgarded? i don't know everything there is to know about stocks yet but i'm getting closer. Sorry about the bad english btw, english is my second language
I have stared at this stock for quite some time after that but i finally came up with an answer to why the stock behaves like this.
The short answer is that the company wants to buyback the stocks cheap.
After the announcment that ODT will start to buyback up to 20 million stocks the sell orders from insiders started pouring in.
Here are the sell orders up to date.
11/17/2021 Kevin C Tang CEO Sell 1,287,577 at $2.29 for $2,948,551.33
11/17/2021 Aaron I Davis Director Sell 170,000 at $2.23 for $379,100.00
11/19/2021 Kevin C Tang CEO Sell 365,289 at $1.92 for $701,354.88
11/19/2021 Aaron I Davis Director Sell 30,000 at $1.92 for $57,600.00
11/22/2021 Boxer Capital, Llc Major Shareholder Sell 200,000 at $1.55 for $310,000.00
11/24/2021 Boxer Capital, Llc Major Shareholder Sell 200,000 at $1.57 for $314,000.00
Totalling 4,710,606,21 $
So as you can see, there are alot different dates on the table, that tells me that are trying to manipulate the price even further down, i believe there are some more sell orders from insiders coming up next week. According to Marketbeat the insiders own 48,9% of the company that equals to 30 million $ at this moment. For the price of 4,7 million (a median of between 3-5% of the ownership) from the insiders, the market cap has gone from 125 million to 62 million and thats a real catch for the company when they will buy back the stocks. i have no clue if there are more sells that has been made from the instutional owners yet because they don't have to disclose that information yet.
I am not sure if they can use their new liquidated assets to further buy up the stock supply but if they can do that they will do that on a steep discount.
mabye someone here can answer that question for me?
Other than that the stock will probably see some new lows the upcoming week, that will probably a good buy in spot, ODT will probably see some nice volatility the upcoming months after that
I need to ask something from this community, is there anyway i can see when they start commencing the buyback? will it show in the daily volume or is that information disgarded? i don't know everything there is to know about stocks yet but i'm getting closer. Sorry about the bad english btw, english is my second language