20 day MA looks to be first level of resistance - looks like it's at .039 today - based on that and .04 being a big psychological barrier, .04 is a key level where we can expect a lot of selling and resistance.
Silly to be talking about these levels when we own a stock that just had a 360% increase in Q over Q revenues and even bigger one in profitability, etc.
.04 is like a mouse bragging about it's size (and we can't even hold over .035 for the moment).
Pricing of this stock is daft. At these levels, it's like buying an at-the-money call option, except that you have no expiration date.
This is the kind of situation that can generate real wealth. Incredible that we can sit with all these positive developments and still see the SP capped at ridiculously low levels.
The big problem for most pink sheet companies is that they don't have revenues and will run out of cash to fund their operations before they start making money. The only way they have to fund is by selling shares, which can't continue indefinitely, and even worse, if the share price gets decimated, the company's ability to fund by selling equity is decreased exponentially.
Our situation is the opposite. WE HAVE CASH FLOW FROM OPERATIONS NOW. We don't need to dilute any longer to fund ourselves. Can the short sellers and MMs keep a lid on this for a while more? Yes. Can they do it forever? Probably not, because they have lost their biggest tool to continue to undermine the share price - which is to dilute the company by printing shares via Naked Short Selling utilizing the Market Maker's exemption for naked shorting.
The best would be if Mr. Starr declared a dividend. That's the death knell for NSSers. They have to cover every penny of dividends for every share that they have sold, including the shares they sold that they never delivered. Probably not going to happen any time soon, but payment of regular, recurring dividends is the "nuclear weapon" against the NSS crew. And free cash flow (which we are starting to see IN ABUNDANCE) is the payload that powers that weapon.
(Sorry, started this post about an hour ago, when we had popped up to HOD - now we've settled back some - still, if we can hang on and close above yesterday's HOD, that will still be positive - and now we have a target - .038-.04 - that will serve as a milestone when we breach it).
M78
