AVOP closed down almost 90% today hitting a low of $.0023 before surging a few ticks above $.007, the stock closed at $.0049. While I don't want to focus on the countless 500k blocks that came in after the close at $.0024, it is something to note. These trades are settlement trades, and with a record breaking share and money volume day, you would expect to see something like this after the close.
Think about it for a second. AVOP's record volume day before today was 3.8 million shares traded. Yesterday AVOP had ZERO trades and not one single share traded hands in the market. Today AVOP had almost 1,000 trades with over 232 million shares trading hands.
What triggered the massive spike in volume? A dump and run. We've seen a lot of them the last 6-12 months. The stock was already in a tailspin from $.26 on light volume, when suddenly a pile of shares hit the market driving the price down. Traders see the stock drop and attempt to catch the falling knife, knowing that a successful catch could net them a quick 100-200% gain. The risk is that the stock will never bounce, however that was not the case here. AVOP rallied from the morning plummet and peaked its head over $.007 before closing at $.0049.
Anyone buying shares in the morning where able to profit. I think we could see more gains tomorrow as the record volume should attract some more bottom feeders.
While I am not fond of this type of stock, if you are a trader in this market you always have to be on the look out for the dump and run. It can be a very profitable (albeit risky) trade.
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