MAMA – Update

By: ispeculatornew
Date posted: 02.10.2007 (12:00 am) | Write a Comment  (0 Comments)

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MAMA – Inc. (Nasdaq) (Closing Price on Friday 2/9/07 – $5.13)

There have been some interesting developments since my last post on MAMA.

First, the CEO abruptly announced his resignation on January 23. This is never a good sign for a company. However, the share price barely reacted to this news.

Last Tuesday there was a surge in volume and MAMA’s stock price jumped up considerably on no news at all. In my opinion this should raise some eyebrows about someone trying to manipulate the share price (or maybe someone trading on inside knowledge). A couple of days later MAMA issued a press release stating they had extended an existing agreement with Yahoo Canada. This press release shouldn’t have affected the share price considering the agreement has been in place. However, the share price opened up considerably higher than the previous close. It has promptly been going down since.

I think the jump in MAMA’s share price last week provides another good opportunity to short the stock. As I have said before the fundamentals of MAMA are terrible and the share price is going to eventually reflect this.

Disclosure: I am not shorting shares of MAMA.

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