Fathom Digital Manufacturing (NYSE: FATH) stock is down 60% this morning. At least that’s how it is with some tickers. This is extremely strange for a company that did a reverse stock split last Friday. It’s not really true either. However, it might be possible to get the robots – the “bots” or “algae” – to sell you FATH shares at that price. If you can do that, you should fill your shoes. Because it is a price that we believe – we are really very confident, but of course not 100% in this uncertain world – that it will fall again by lunchtime.
On Friday, Fathom Digital had this reverse stock split: “Fathom Digital Manufacturing (NYSE: FATH) stock was expected to rise 2,000% at the open. The 20-fold increase in FATH stock is not the result of a new revival in the business. This is a nominal price change due to a purely technical change that is intended to solve a purely technical problem. Fathom needs to drive up the stock price. Therefore, they will drive up the stock price.” and “This does not change the market capitalization of the company, its total value, but only the number of shares that make it up.” Therefore, the stock price reacts mechanically and increases by 2,000% or 20 times. The listing problem on the NYSE has now been resolved.”
OK, but that doesn’t explain today’s 60% decline.
Fathom Digital stock price from Seeking Alpha
However, this explains it:
Fathom Digital shares are traded on Nasdaq
There was a trade in a stock at this 60% lower price. That moved the ticker. Now it is clearly either an arrow or an attempt at manipulation. As soon as adults start working, this price will fall again. So the question is: Are the systems sleeping so long that they sell us shares at this low level? If so, we should clearly buy.
No, this is not a certainty as it is vague and almost possible that this is the actual and new trading price. However, the likelihood is that this price will be back in the $5-$6 range by the aforementioned lunch time. The only interesting question is: can we buy at this price to be able to sell it at lunch?
This depends on the details of your brokerage account. Good luck at this point. No one will be able to buy in large quantities, but perhaps some will manage to sneak through a few hundred shares?
As we say: good luck.
Comments are closed.