I agree with some of what you are saying. However, it's more likely, in my humble opinion, that the selling pressure is coming from some large get rich quick type insto that was part of the recent IPO hoping to turn a quick trading profit. It is somewhat less likely in my opinion the selling pressure is coming from long term holders. With such low liquidity stocks, even a small amount of selling pressure can move the market. With that said, as a indicated on a previous post, 99% of investors are possibly just holding FBR long term based on the fundamentals. They may not even care the price is in the dumps because they are long term holders like myself and see the fundamentals improving, even though Mr Market may not agree. In summary: it's hard for me to imagine that any long term investor would be giving their shares away for cents in the dollar while the fundamentals are actually improving and the future looks bright. But that's the market for you and if people can't handle the gut wrenching volatility, then they should probably stick to index funds and pursue their passions outside of investing in individual stocks.
One thing we know is over the long term price follows fundamentals and so if you are trying to time the market then good luck to you but I have never met a successful market trader. All to their own.
Not investment advice. Do your own research, etc etc.
FBR Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
(20min delay)