Momoffour, with your screen name it is especially difficult not to have empathy for your losses in this, and for much of my position, I too lost money. But for practical reasons, I did sell my shares. I first bought BIEL at 2-4 cents way back in 2008, on the merit of its product, and held those shares. I doubled my position at $0.004 just before the run up and made a lot on those shares, even after selling them recently. Unfortunately, I had also added to my position after this ran up and failed to treat those shares as a swing trade position as I had sworn to. Those are the shares that put me in the hole. Honestly, under the present circumstances, I would wait to buy back BIEL as a long-term investment until they hit the OTCBB.
Forces that have nothing to do with the inherent value of the company itself cause the price volatility of most Pink Sheet stocks. What happens is naked short selling by market makers. I believe it is this, and not anything that Joe Noel or Andrew Whelan or anyone else involved with the company itself has done, that has caused the PPS of BIEL to drop. Let me explain why.
Most Pink Sheet stocks fail. Almost every pinky that skyrockets also plummets almost immediately afterward. For this reason, the market makers have no problem selling folks millions upon millions of shares when the run comes... shares that do not really exist. They gamble when they do this, because if the company is a real winner, like BIEL, and does NOT drop back to previous levels, they have a serious problem. They have to deliver those non-existent shares to the people who bought them, and they can't, because they don't exist. If you go back and look at how many shares went into long-term investor hands during the BIEL run up, you'll see the problem. Look at that huge volume going up. It was never matched by huge volume coming down, because most of us rightly believed in the company and held. In my opinion, this is the core reason for brokers refusing to initiate positions and only allowing you to sell, and why they refer to needing certificates, because they have had problems with non-delivery of shares. They may even be in collusion with the market makers they depend upon to help those MMs cover their shorts. Until enough of those fictional shares are sold back to market makers, the buy restrictions will probably persist.
The buy restrictions did two things. They prevented additional shorting and aided the MMs in walking the PPS down so they could buy back at a cheaper price. That is the sum total of what's going on here, in my opinion, and these are the people you should be blaming, not Noel or Whelan. BIEL is a strong stock and a strong company... that's the problem. If they were on OTCBB, the naked shorts would have to have been covered in a reasonable time frame, but because they were not, other tricks were tried. If Whelan and Noel are guilty of anything, it's listing a company of real value on a market that is accustomed to failure.
AI
