Steniel Manufacturing [STN 0.89, down 30.0%; 71% avgVol] [link] dropped 30% in its second day of trading. STN opened the trading day flat but soon started a consistent downward trend that would drag on STN’s price the whole session. Trading volume was relatively high at 9.1 million shares (~60% of Thursday’s 14.7 million) through 586 trades. The daily loss was the maximum allowable by application of the PSE’s trading band for the day.
MB bottom-line: This clown show is nowhere near finished, but the fact that STN bounced lightly off the floor twice over the final two hours of the session tells me that there’s still a lot of downside left in this stock to wring out before we get any kind of stability. The most recent “no band” trade that we’ve had, LFM Properties [LPC 0.06 unch; 0% avgVol] took five straight trading sessions to shed 40% of its value. Will STN follow a similar path? Hard to say, but the time it spent on the floor says that we’ll probably see at least one more day of red. The only thing all these “no band” stocks have in common is that over the long term, they retain only a fraction of their first-day trading gains. They’re a one-day game of musical chairs.
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