Fathom Digital Manufacturing (NYSE: FATH) stock is down 60% this morning. At least it is by some tickers. This is most strange for a company that had a reverse stock split last Friday. It’s also not really true either. However, it might be possible to get the robots - the ‘bots or algos - to sell you some FATH stock at this price. If you can do that then you should fill your boots. For this is a price which we think - we’re really very confident of this but of course not 100% in this uncertain world - is going to revert and do so by lunchtime.
On Friday there was that reverse stock split at Fathom Digital: “Fathom Digital Manufacturing (NYSE: FATH) stock should jump 2000% at the open. FATH stock rising 20x is not the result of some new-found resurgence in the business. This is a nominal price change coming from a purely technical change, meant to solve a purely technical problem. Fathom needs to get the stock price up. Therefore they’re going to get the stock price up.” and “This doesn’t change the market capitalisation of the company, its overall value, just the number of shares that make it up. Therefore the stock price reacts mechanically, rising 2,000% or 20x. The listing problem with the NYSE is now solved.”
OK, but this doesn’t explain the 60% decline today.
Fathom Digital stock price from Seeking Alpha
However this does explain it:
Fathom Digital stock trades from Nasdaq
There’s been one trade, of one share, at that 60% down price. This is what has moved the ticker. Now, this is clearly either an arrow or a manipulation attempt. This price is going to revert as soon as the adults get into work. So, the question is, are the systems asleep enough that they’ll sell us stock at this depressed level? If so we should buy, clearly.
No, this isn’t a certainty because it is, vaguely and just about, possible that this is the real and new trading price. But balance of probabilities is that this price will be back in the $5 to $6 range by that lunchtime mentioned above. The only interesting question is can we buy at this price to be able to sell at lunch?
That’s something that will depend upon the details of your broking account. At which point, good luck. No one’s going to be able to buy in any large quantity but perhaps a few might be able to slip a few hundred shares through?
As we say, good luck.
