Tuesday, February 2, 2016

Blackberry - Market Manipulation

I'm a Blackberry fan.  Not the raving fanboy type that has to have the latest berry, and that defends them no matter what.  No, I'm more the fan who silently roots for the underdog, and who watches their move with a mind both hopeful and critical.
I've rooted for BB10, bought, wanted to like, and then reluctantly sold the Q10.
I've examined the Priv, marvelled at it's UI and build quality, and reluctantly and silently put it back after concluding that the high price,inferior front camera, and substandard (by Blackberry standards) hardware keyboard were showstoppers.
But the shorts have forced me to break my silence.
By shorts I'm of course not referring to those of the Bermuda variety.  I'm talking about those market participants who grab hold of a given stock, sell it short, and proceed to manipulate the market for that stock to artificially constrain its price and range.
Since the second week of January, BBRY has been constrained within a very narrow ~3% trading range.  This is in spite of significant general market movements, and significant positive news about the stock (increased stock buyback, adoption of Android & abandonment of BBOS).  The stock has failed to participate in any of the market upticks (and conversely, in any of the market downticks) since week 2 of January.
Now broaching my silence is not out of a sense of disgruntlement - but rather of fascination that a subset of the market participants is able to exact such remarkable control of a security that it's trading range can so severely ignore rational reasons for movement and stay firmly still, in the face of multiple reasons for not doing so.
Can't wait to see what the month of February brings!

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