Stripnomics

Only time will tell when it scrambles.

An Alexandria Real Estate (ARE) director sold 5,000 shares at $34.95. Was that lower than the secondary offering price? One of those things that make you go hmmmm… 

Here is the screengrab:

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Do you think he thinks the stock is going up?

Also, another two “Unavailable for Late Trading” news alerts came across the DJ Newswire today for ARE.

The saga continues…

Since my last post, Alexandria Real Estate (ARE) has been unavailable for late trading another four days. Here is the screengrab:

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I don’t pretend to know what this is all about.  Why would late trading be halted? Perhaps someone was abusing the system? If I had to guess, I’d suspect that shares were being recycled after hours. Anyhow, It does not matter. Buyers continue to be exhausted.

From a technical standpoint, ARE is displaying very unique behavior… the kind of behavior that precedes a powerful move. I think the move will be down but only time will tell. I am patient.

Here is a screengrab of the DJ Newswire report:

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I honsetly don’t know what this means. Maybe it’s something. Maybe it’s nothing. Either way, this stock is toast.

Volume is dying. Buyers are silent and the price level cannot be supported much longer.

I’ve increased my short position in Alexandria Real Estate (ARE) today. As you can see from the graph, it is breaking down in a very distinct downward trend. 

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Isn’t this a thing of beauty? I guess it depends on your point of view. For all the fellas that got suckered into buying the secondary, I suppose this is not a pretty picture. I hope they were smart enough to take profits when ML and CNBC rallied it to $43.50.

Although ML, Sakwa and crew have been able to stabilize the price recently, Gambler’s Ruin sealed this REIT’s fate a long time ago and the price action is beginning to reflect the INEVITABLE. The price can only be stabilized for so long.

As I told you before, I expect to see some massive selling from the insiders very soon. They are not suckers. They know where the common stock is headed. I’m sure they can anticipate what is going to happen next by looking at a monthly chart:

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 I guess I should have made ARE my Short of the Year 2009-2.