After noticing that shares of Destiny Media Technologies (OTC BB: DSNY.OB) dropped 23% today on about 10x average volume, I put in a quick call to Destiny's CFO, Fred Vandenberg. He didn't have any explanation for the move, though he suspected short sellers. He also seemed to be in a good mood while mentioning that Destiny would be releasing its Q3 numbers tomorrow and updating its investor site, DSNY.com.
Recall from my conversation with Vandenberg after Destiny released its Q2 numbers, that Vandenberg had predicted that Destiny would turn a profit in its Q3. Destiny's CEO Steve Vestergaard had falsely predicted profitability more than once in the past, but this was the first time that Vandenberg, the company's CFO, had done so. Vandenberg has tended to be conservative, as befits an accountant, in his comments to me.
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2 comments:
Ah, yes, of course. It's always the short sellers fault. Unless they have some inside knowledge about the announcement tomorrow, why on earth would they speculate about this microcap stock, especially given its recent announcement re landing another big account?
To be fair, Albert, I should elaborate a little on the subtext of his comment. He wasn't defensive or accusatory as some other CEOs have been in similar situations; he didn't sound terribly concerned (when I called he said something to the effect of, "I figured I'd be hearing from you") and he was just offhandedly speculating when he mentioned short sellers.
As to why shorts might speculate in a micro cap stock, I guess for the same reasons longs might. I used to think shorts focused mainly on bigger prey, but a lot of things that I used to not associate with micro caps (e.g., activist investors) seem to be happening at the micro level.
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