Here is how I think this scenario will go down and I welcome input and comments. There are a group of people who steadfastly claim that the PPS will go subpenny with the 10K. For the past 3 months the PPS has pretty much flat-lined in the .015 range and the daily average volume has been around 1.5MM shares, so in theory there's somewhere around 100MM shares changing hands in the past 3 months. Now keep in mind these are guesstimates, but with that said there's the potential that some group has placed their hands on a sizable amount of shares. We know the stock has been and is being shorted so......what would it take for this "group" to start dumping large volumes of shares thus driving the PPS down? Not much. They have a doom/gloom event coming up that they can easily play into and manipulate the price down easily if they just start dumping shares en mass.
Now, why would they do this? Because by dumping large volumes they are able to drop the price to a level where they can actually start to cover the "real" short positions which I think are waaaaaaaay down around .002 or less. Basically they've been paying up here in the .015 range with the intent to offset the huge loss short positions they face down in the .002 (or less) range.
I find it very interesting that these subpenny predictions have been made with such conviction and certainty time and time again over the past month or so, almost like someone or some group has some "inside knowledge". Anyone else find that interesting besides me, FINRA and the SEC?
