Greenscorpio & Meerkat,You haven't jumped in naively at all...

Greenscorpio & Meerkat,

You haven't jumped in naively at all Greenscorpio, I have been asking the same question myself as an ATU fan and have just found out the answer this evening to my absolute horror. Apparently some brokers have been requesting a MINI warrants market in ATU and have been transferring client holdings from the underlying ATU stock into the ATUKCA MINI warrant (I don't even know what MINI means or what the acronym stands for). As I've just found out, MINI warrants have a triggerable or knockout stop loss limit embedded into the product and in this ATUKCA case now, that stop loss limit is 40c I am lead to believe. If ATU hit 40c, then ATUKCA gets knocked out and the investment bank that issued the warrant gets to keep some or all of the premium that the ATUKCA buyer has paid (my knowledge on this is not 100% so I'm not entirely sure if this is the case but sounds possible).

So, long story short, some genius has traded out of 1.2m ATU shares and bought 1.2m ATUKCA warrants last Friday and this Monday for a total outlay of $605,000 which could all potentially evaporate should ATU hit 40c. Sheer madness I know but I'm only relaying what I learnt today.

So now, unfortunately for all us loyal holders in ATU, we have a known stop loss price of 40c that I'm sure a hedge fund would love to hit that pockets the investment bank a small fortune in a very small time-frame.

To Meerkat, I don't believe ATU are trading on fundamentals or technical analysis at the moment, the market has woken up to the fact you have a knockout target sitting right at 40c.