Seeking Alpha

Nicholas Anderson's  Instablog

Nicholas Anderson
Send Message
Nick is a former marine, current finance student and independent trader, who is 100% self taught. Nick has particular interest in the offshore drilling industry and prefers to trade in the offshore drilling industry. Nick blends conventional methods of analysis with unconventional methods of his... More
  • Somebody Just Discovered DLH Holdings 0 comments
    Jan 16, 2014 10:19 PM | about stocks: DLHC

    Those of you who follow or own DLH Holdings (NASDAQ:DLHC) know that the stock is up about 75% in the past 10 trading days. Some may wonder why... there hasn't been any bullish news coming from the company in the past 10 trading days to justify the rally and the company hasn't repurchased any shares... yet... Volume is a big hint here the volume is almost 7 time average daily volume and its not a short squeeze because there aren't any options trading on DLHC so we are left with three logical explanations.

    First Possibility.... An analyst working for a hedge fund stumbled upon the stock and the fund is initiating their position. Since an institution would usually purchase tens of thousands of shares and the stock was so thinly traded a single order could e driving the price up. when I purchased my shares in the beginning of October it took 3 trading days to completely fill my order and I only bought a few thousand shares.

    Second Possibility... Similar to what occurs in the options market, (since there are no options trading) A trader is purchasing the stock with some inside information and it has taken more than 10 business days to fill that order.

    Third Possibility... numerous investors are very bullish and think the stock would do well for them. I think this is the least likely of the three because of the fact the stock is so thinly traded it acts like an options contract in terms of liquidity and volatility. In my experience there are no coincidences when you see volume spike like that and no clear indication why its usually because somebody knows something...

    In either case, whether its an institution or an individual... they more than likely are buying the stock because they believe there is still significant upside from 2 and a quarter... I happen to agree... there still some upside left..

    Disclosure: I am long DLHC, .

    Stocks: DLHC
Back To Nicholas Anderson's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Voted No on measure P with the rest of Santa Barbara county AND bought 100 shares of $ROYT... good risk/reward
    Oct 31, 2014
  • There was a firefight in the Ukraine today... I guess its gonna take more than that to get traders off their positions in $RUSL its up 14%
    Mar 18, 2014
  • $RUSS...serious sell volume today. markets sellin on the news im sellin on different news... Russians cross boarder on Monday...I gotta hold
    Mar 14, 2014
More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.