Majesco Entertainment (COOL) rocked the market recently with better than expected earnings. Pennystocklive members and I played it from $2.65 and cashed in big on the obvious run up play into the June 13th earnings. Knowing that earnings could be volatile we were out well before shares sold off. The hard and fast drop appeared as if it would settle around the 20 and 50 day MA’s which is where the story begins.
One would assume the strong earnings and outlook would bring COOL back up at some point — so I jumped in at the Moving Averages around the $3.20’s. Shares bounced all around for a few day but the sellers clearly outweighed the buyers with massive offers showing up on the ask. With Zynga and the Russell finalization right around the corner I thought the bounce would surely occur off the $3.00 range and added shares there.
This is where the story gets comical. On June 20th, 21st and 22nd the clueless CEO Jesse Sutton proceeded to unload 600,000 shares right at support on unsuspecting shareholders. As if to say, “I fully expect COOL to go lower” he sold 300k on day one, 200k on day two and 100k on day three shitting in the face of future support.
Then he has the balls to try and sucker shareholders back in by issuing a Russell announcement as if we weren’t already playing the Russell hype Jesse. Obviously this PR was a failure Mr. CEO and stuck about as good as freaking Postit note on a tiger’s ass. Ya you managed to sucker in a few more buyers in AH’s that Friday gaping shares up on the 24th, but it’s obvious the major damage had already been done.
See Jesse, when you sell 600,000 shares on the market after your stocks tanks on good earnings, what does it say to us about your outlook Mr. CEO? Seemed like you had all the catalysts lined up to turn this one off earnings profit taking, sorry to see you couldn’t time your dump better.
No matter how much I like COOL, the earnings or outlook, it’ll stay off my watch list for the time. I expect crap like this on pump and dumps… just didn’t think COOL fit that category but learned the hard way.