Shorters Speculate on Paid, Inc. (OTC:PAYD) Lack of News
05 Aug 2010

Yesterday Paid, Inc. (OTC:PAYD) stock performed the same pattern as of Tuesday by jumping up again on growing trading volume. This time the stock even managed to bounce off its price channel and that happened just like on the day before on no news or any relevant corporate events.

The stock surged a total of 26.53% by the end of the day and closed at $0.31. The trading volume was nearly 2 million shares, or four times the average and almost twice the volume from the previous day. It seems hard for the two sequential jumps to get explained by reasonable events, as the latest press release of the company was made at the beginning of June.

It concerned Aerosmith 2010 Tour and the VIP Experience packages for select dates, which were offered through the Aero Force One fan community, managed by Paid. Remarkably, the market’s reaction was not positive and Paid even started declining more progressively than it did before.

There are no recent SEC filings as well, the latest one being this year’s first quarter report, filed in May. They were not encouraging, since the company is still making losses like it did in the previous quarter, despite the substantially increased revenues. Which raises even more doubt on eligibility of the current market valuation. Investors seem exorbitant, wiling to trade the stock 15 time above Paid’s sales and over 46 times above the boob value.

It looks like they are waiting for news to come out very soon. Though, it is not clear if the news will be god or bad, and while asking this one can finally find a reasonable explanation for the stock moves of the last two days. Yesterday 41% of the total volume was shorted and on Tuesday that value was 44%.

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