RAC - Charts & Price Action, page-11039

Seeing as we're all speculating I'll give my two cents worth. I think it was retail capitulation. Some of the many holders that were gathered along the way dropping their shares before their holding becomes red.

Interesting to note the volume yesterday, it was the biggest volume since the SPP announcement in November, the same day the price dropped 14%. The day before that was even bigger volume, that being the heart protection breakthrough announcement with a rise of 11%. Yesterday had big volume (in RAC terms) at 880,000, there have only been 15 trading days in the last twelve months with higher volume.

Yesterday also showed us the buy volume is not as thin as it appears on screen. I recall the buy side was very thin yesterday all day - similar to this morning, yet the volume that moved was significantly in excess of that. I think this shows the interest off screen waiting to buy.

I still maintain that the BG Paradox is a big driver of price, that is, why buy today when BG is going to keep adding shares to the sell which stalls share price growth. If his selling follows a similar percentage of the total volume then as volume increases so does his selling which always stops the price gathering momentum, and on red days causes it to fall even harder.

A few things determine my decision to keep holding, and even keep buying. I bought recently at $3.20 and $3 and I considered those good buys at the time. Nothing has changed so rationally $2.30 is a screaming good buy.

I consider my participation in the SPP to be a direct investment in the company and its plans. Even if the market has temporarily corrected the price lower than that, I participated because I like the acceleration and expansion of operations. I'm not walking away from that direct investment (where my money went to the company for a specific purpose rather than another investor/trader for the purpose of speculation).

There's no question there's some big forces impacting all companies at the moment (biotechs seem to be getting smashed really hard), but I see no reason to lose conviction in this company and it's prospects because other people who I know nothing about have.