False Volume Alert: Catalyst Semiconductor (CATS)

Posted in General, pre-market 
August 6th, 2008

This morning there were some unusual trading patterns as a few thousand shares of catalyst Semiconductor Inc. (NASDAQ: CATS) appeared to have more than a 100% gain in pre-market trades.  But it turns out these were trade errors and the trades appear to have been busted.  What is odd is that you frequently see even the fake trades influence real trading.  CATS stock is up over 7% today at $6.95 as of 9:45 AM EST on almost 28,000 shares of stock.  Yep, just 28,000…..

Its average daily volume is only 101,000 shares and its market cap after this jump is $106 million.  Its 52-week trading range is $3.16 to $7.92, so this small cap chip stock has actually held up well considering the market.

Many people quote “The Godfather” and other gangster or mafia movies for their valued lessons in life, so is that unusual that this stock would trade up more than the market because of fake trades that were removed?


August 6, 2008

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