Must Read>>> They don't want bag-holders to break even. Simple concept. As more bag-holders are made, they obviously create enormous resistance on the stock moving up. Since promotions are done through cross-trading, the promoters (and the company) would be forced to buy up all of the stubborn bag-holders' positions in order to inflate the price. That explains why TCEL is reaching lower lows and lower highs in the entire span of its history in terms of obvious spikes in volume and price as the result of cross-trading.
In order to understand how a cross-trading promotion works, you have to understand how a company actually profits from this. Essentially, because it is just trading the same shares back in forth to create artificial volume and inflate the price, the only "profits" a company makes are the new shares that shareholders purchase during the process. The shares are generally introduced into the market as the pump beings to quickly collapse following a designated peak. As the pump collapses, bids are quickly taken out and this is essentially where the majority of the profit is made. New shares quickly introduced to the market at an artificially inflated price. The collapse is designed to take place so fast that new bag-holders are unable to sell their positions to break even. It also allows them to recover their initial invested funds used to do the cross trading. The promoters must dump off the cross-traded shares at an equal-to or higher price as a top priority to break even, then sell the new shares either simultaneously or after the initial investment is recovered. The hope is that they will hold their positions long enough for their losses to destroy their position, or until a R/S takes place and their losses are further reinforced.
The magical factor in the OTC that enables companies to do this is the ability for a company to in-effect screw shareholders over by implementing S/S changes and reverse splits with no penalty. It's like submitting a document that enables the companies to magically create an unlimited number of new shares out of thin air, thus reducing the value of the other outstanding shares. TCEL could care less if they are bogged down at rock-bottom prices. If bag-holders want to take a stand, TCEL will simply max out their S/S and do a R/S in defiance of the shareholders.
The concept of "maintaining" bag-holders involves identifying the price at which the majority of the bag-holders purchased their positions and ensuring that that line does not get crossed so the follow-on promotion does not end up slicing through and repurchasing the old "profit-yielding" shares.
TCEL's goal right now is to pump it up again up to that threshold, which is currently in the .0005-8 range and resume dumping as many shares as they can while the prices remain inflated. I don't personally know what the calculated threshold is, but I can safely conclude that TCEL will not surpass .001 because some highly-intelligent people chose to take on massive positions of 50 million+ which are impractical to work through.
My projections based on my extensive experience in this area is that TCEL will have another run which will peak out around .0005-7, but not until after it touches .0001 or 2. After that, it will sink back down to .0001 and have another run to perhaps .0003. After that, they will determine that it is extremely bogged down and they will execute an R/S to continue the process and further destroy the value of the bag-holders' positions.
Was that clear enough for you? Does it make sense now?
