Brokers are recommending this stock BUT their recommendations are not backed by aggressive institutional buying. There is a famous quote by Keynes: "The market can stay irrational longer than you can stay solvent.”
Like I said before, the fundamental analysis may be good but because of the lack of liquidity in this counter, it is behaving like a small speculative mining stock. The price can be easily be pushed even with small volume. Notice the 5-10% drop for this counter on numerous occasions.
Ask yourself, if the share is such a screaming buy, why aren't the fund managers rushing in. The most plausible conclusion is, the funds have already bought at the IPO and now bailing out at any decent price. Unlike retail investors, most institutions would have bought around $2.10 and they are willing to sell at breakeven or a small loss. And when you have big selling volumes going through, fundamentals are ignored ( at least for the short term).
For every seller, there is a buyer. It is the closing price that determine who has the upper hand. Since the SP closed at its low today, it is clearly the sellers who have the upper hand for now.
VIT Price at posting:
$1.72 Sentiment: Hold Disclosure: Not Held
