Alkane Inc (ALKN)

[rich pearl]

Sarge.... it was a little over 11M and almost all of it was done in the last hour and a half. its hard to see these things for what they are when they're happening, but in hindsight it looked like a very concerted and orchestrated effort to sell a story. they say that volume precedes price, but i think its also a matter of volume begatting volume. you're prolly right regarding it needed more than just IHUB PM's, but the era of social media is upon us, and its not that hard anymore to 'spread the word'. 45M of a double zero stock is really not an outrageous amount of shares to be transacted in a single day. what sets it off here -- not withstanding the fact that the company has ceased to exist -- is that this is an illiquid stock that until it was walked up earlier in the year, from .0003 to .0049, had been relatively inert for the past three or so years. it was prolly the success of that walk up that made this such a good candidate for a quick frontloaded bump up.

of course, what goes up often comes down. the chart linked below offers a picture of what an unsolicited promo often looks like.

http://www.profitspi.com/stock-chart.aspx?id=ALKN&ca=999582320

if you look carefully you'll see on the day the run was set up, the volume spiked to the 11M and all the indicators turned up. then, on the day of the run to .0055 both the chiosc and accum/dist turned sharply down. what that sez' is that shares were being redistributed rather than accumulated. iow, sellers were offing their shares. that the volume dried up is the confirmation that they were exiting and not re-entering. fwiw, swing traders are the key to any continuation, such as a consolidation phase. it takes comparable volume to ultimately absorb the impact of all those shares trading hands and sans volume there is no consolidation, and thus no base.

the chart also offered a warning to new buyers when in looking at the candle from that day it had a huge wick that ran from that .0055 high back to .003. its an exhaustion wick. the stock ran itself out. a buyer at the top would have been looking at a 50% haircut. this, too, supports the idea of a p&d.

interestingly enough, the math, supports the idea of a manipulated play. most of that fontloaded 11M could have been bought by just 2 to 4 players with enough access -- think social media -- to get the word out without having to go too deep into their pockets, and to also do this under the radar of authorities like the SEC. supposing they bought 8-9M at around .0008 and sold them at an average of .0035, they'd have turned 7k into 30k. that's not a bad return for a single days play. if they could do one of those a week they could net somewhere around a million dollars.

of course, this is all speculation on my part, but unlike the 'saviors' here, who always seem to come after the fact, and for all intensive purposes seem to gloat over the misfortune of the stickholders without ever teaching them how to recognize what happened, i like to ponder the imponderables with an explanation rather than a haughty rebuke.

btw... this run and pullback is a very good example of why most buyers should always put an order in upon buying to sell half at the double. or, in the case of a running stock. if you enter after it has alreay doubled, to consider selling 2/3 on a gain of 50%.

alas, i fear i have prated too much.

as always, no one has to buy into what i write. all are free to disagree, and to use, lose or disabuse my views.

best of trading to you and ALL,

rich