The YRCW stock closed today at around $0.205/share.  For those who bought it at around $0.18/share following our SMC Intra-Day Update, gains would be modest at around +13.8%.  It’s currently showing a bit more strength into the after-hours at $0.217….

In the summer-months, when trading volume and participation is scattered, unusual things can happen to stocks if an institution or hedge fund with muscle comes along and wants to push things around.  This can lead to favorable and also unfavorable outcomes.  If an institution or hedge-fund wants to own a stock and push the price up, they can do so during this time of year quite easily.  If they want “out” of a stock at any price, stocks can drop very hard with an absence of buyers to pick up the slack.  We’ll simply have to see where YRCW heads from here.  At this time, YRCW is in demand and UP +84% for the day, from its near all-time low of $0.11/share.  Volume was its highest EVER at approx. 230 Million shares traded.  That’s almost 4x its recent 3m daily average.

Last year on July 1st, AIG Inc. (Ticker: AIG) (the epicenter of the credit-default-swap fiasco) was trading at around a $1/share and went through a 1/20 reverse split, bringing the split adjust share price to a little over $20/share.  The stock traded as high as $22.96/share that day, and then reversed and sold off hard for two weeks down to $9.13/share.  The stock “flat-lined” at around $12/share.  Imagine what investors who had bought the stock at $20/share were thinking! There were plenty who exited that one in pain. Split adjusted, the high for the stock in 2007 was approx. $1,400/share or pre-split $70/share! 

Then the unimaginable happened, the stock roared from $12/share to $55.90/share in less than a month!  That was some summer-time volatility!  If you divide $55.90 by 20 (to account for the share split), the stock at its recent high of $55.90 was only a pre-split equivalent of $2.79/share.

Today certainly marked some buying interest of YRCW stock.  YRCW has announced plans for a reverse split, but as far as we can tell the date and details of the split have not been announced.

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