I understand that sometimes promoters get paid in stocks, and I assume they always dump them. However, there were a number of promoters and stock groups touting this last Friday. And someone posted the fine print of one or two of those and it sounded like they received $500, or maybe a few thousand for their promotion.
This whale purchase and sell-off was operating with a completely different class of money. The 30 million shares purchased at .0038, means a purchase price of $114k. Whether this purchase was made by one of the promoters, who knew news was coming, or just by someone who was ready to bet big on a penny stock chart play is immaterial. The main take-away for me is that this was clearly outside money. No promoter gets paid $100k+ to promote a stock. And since those buy numbers line up almost exactly with the sell volume on open Friday, I think it's a reasonable guess to say that's the same entity.
As for the V twins, yeah I was watching L2 on and off most of the day. And that does seem to be the way they operate. If X number of shares get purchased within a certain time period, they move up. If the sales are too slow or not enough, the stay put. If they're forced to move up enough, the other V jumps in. And if it continues to happen I think they finally give up and retreat to much higher prices.
On the one hand, yes people may have held off on buying more because the price wasn't moving. But on the other, the reason the price wasn't moving was because there wasn't enough volume. And with good reason. With normal "sell on news" or promotional dumps, we would've rebounded and then more people would've jumped in. And you can see on the intraday chart a rebound was attempted from ~9:45~10:00 am. But because that volume paled in comparison to the large sale it didn't push back hard enough. And so by 10:15 some people got cold feet and bailed, causing us to slide down to .0047. From the high at open, that's around a 25% drop. And that set the tone for the day. Anyone waiting on the sidelines probably turned their attention elsewhere and everyone else was in a pensive wait-and-see state.
So yeah, the MMs held it down most of the day. But I think that may have just been a side effect from everything else.
My hope is that understanding what happened will help us stave off some of the bad taste that was left in everyone's mouth from Friday. But that will only happen if the word gets out. We shall see...
GLTA! BMSN
