There are a few type of holders of the SAS stock. Long term holders who will be holding regardless, smaller traders who scalp and have short stops on the price and then instos/bigger traders who are more focused on trading it for a few cents with bigger size. Instos will fall into both the long term and bigger trader category, but bigger traders will probably not be wanting a lot of size on going into launch - Loss on a failed launch would wipe out any gains they made have made trading it over the past few months. For similiar events where something was thought certain to happen look at Brexit, Clinton, Swiss peg and the immediate reaction. Carnage for the people who had positions on No Brexit, Clinton and long at the Swiss peg.
They are happy to buy and sell at the support and resistance levels but reduce prior to launch.
Personally, being a futures trader for the past 10 years. I have seen a lot of 'buy the rumour, sell the fact'.
For those who are not familiar with this it is that a position is accumulated before the event and the event if therefore priced in that it will occur. This may result in a short term pop but those people who had bought before hand (and are not long term holders) will cover pushing the price back down.
I am a long term holder, but I personally think that the stock will not move significantly until the testing is proven successful, rather than the launch being successful.
Whilst a launch failure would be pretty bad, the risk of that happening is quite low.
The massive upside is with the technology being proven to work & then MOU turning into contracts.
Just my own thoughts on it
SAS Price at posting:
22.3¢ Sentiment: Hold Disclosure: Held
