Just like on Wednesday and on many other days this year, SWKH stock closed the last trading session without a change in the price at exactly $0.91 for a share. Though the very extraordinary volume of 2.39 million shares, a rare event for SWKH whose daily average dollar volume barely exceeds $100,000, during the day the share price could not even break up the $0.92 level that got proved as a hard resistance level.
Unlike the resistance, the supports on the downside does not seem so hard and reliable. From a fundamental point of view it also seems that only the reported as of end September 2010 strong cash position gives traders the confidence to trade the stock at all. At the end of 2009, SWK Holdings sold out all its assets to Kay Technology Corp., an affiliate of Accel-KKR Capital Partners III, L.P. This is where all the cash came from and the company states in its latest financial report that since September 2010 it has no operating business and no any other material assets than the above mentioned cash amount.
SWK Holdings has still not issued any updates on its process of evaluating potential business candidates to invest in, and the latest huge volume is likely to have been made up or initiated by some insiders’ transactions as it was in the middle of November last year.
