CS as a Penny Stock
$Credit Suisse(CS.US$ it is widely believed that mutual fund, etf and other type of institutional investors' general rule is that they can not owned penny stocks. If a stock became penny stock then they should unload their positions asap.
Nearing its way down to below $ 1, it creates snowball effect because of HFT , automated bot trading, etc pushed down price even further. That maybe explained why CS drop more than 50% a few days ago, even though news of bail out has been disseminated.
my hunch is that UBS will not allow CS to drop further which will create another snowball effect from institutional investors. I may be wrong big time, but thats my experience of similar stocks in the past.
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hocker : good insight. thanks for sharing ur experience.
股勇者 : good sharing. glad to learn