SMTC Corporation (NASDAQ:SMTX) gaped down under strong volume, but the plain consolidation afterwards wasn’t convincing enough of a price collapse and thus a gap fill could be underway.While traders are left speculating about the origins of the gap down, the company remains quiet on their side. Some most prominent thoughts on this matter are addressing the possibility of leaked information on upcoming earnings report, possible negative news or simply manipulation by market makers.
Somewhat ruling out the insider dump, there was a recorded buy transaction back on June 16, when David Sandberg purchased 18.4 thousand shares, paying $65k for them. The stock is down 33% from there.[BANNER]
Market makers cannot be easily checked for wrongdoing, but their interest would lie in getting rid of stop loss orders and forcing people to sell at lower price for them to load up cheaper shares. Again, this is only one of the possible, unproven scenarios.
Since the price is holding low it can be assumed that panic kicked in. Still a month to go before another quarterly report is filed, so short term panic about the results doesn’t seem liable. The company has provided no guidance on possible earnings.
Historical top line results showed increase in the last three quarters, but decay on the annual basis. Net income has failed to retain growth in each quarter as well.
