fast
07-27-2009, 02:39 PM
I’ve been closely watching Guaranty Financial Group Inc, symbol GFG, that has been trading on the NYSE. The stock price recently (and significantly) gapped down from 22 cents per share to 13 cents per share.
According to a recent SEC filing (form 8-K) found on the EDGAR database at sec.gov, under the heading “Results of operations and financial condition; material impairments”, I noticed where the following statement was made: “In light of these developments, the Company believes that it is probable that it will not be able to continue as a going concern.” Needless-to-say, we won’t be considering this as a long-term buy.
Suppose you owned shares of that stock (at 22 cents per share) on the morning of July 23rd, and further suppose that you sold at the instance you read that report before the stock price sharply declined. All would we well and fine except for the fact form 8-K was accepted at 17:09:05 well after the market had closed.
The volume was very high during the first few minutes at the opening of the 24th, but that doesn’t explain the happenings that caused the major down gap before the market opened for the day. I did not have a financial interest in the company, but I have a question about what would have happened if I did. If I placed a market order (after hours) to sell within minutes of that filing, would I have gotten out closer to 22 cents or 13 cents?
According to a recent SEC filing (form 8-K) found on the EDGAR database at sec.gov, under the heading “Results of operations and financial condition; material impairments”, I noticed where the following statement was made: “In light of these developments, the Company believes that it is probable that it will not be able to continue as a going concern.” Needless-to-say, we won’t be considering this as a long-term buy.
Suppose you owned shares of that stock (at 22 cents per share) on the morning of July 23rd, and further suppose that you sold at the instance you read that report before the stock price sharply declined. All would we well and fine except for the fact form 8-K was accepted at 17:09:05 well after the market had closed.
The volume was very high during the first few minutes at the opening of the 24th, but that doesn’t explain the happenings that caused the major down gap before the market opened for the day. I did not have a financial interest in the company, but I have a question about what would have happened if I did. If I placed a market order (after hours) to sell within minutes of that filing, would I have gotten out closer to 22 cents or 13 cents?