IMPORTANT EMAIL FROM COMPANY IR. Got a response back from Ray Barton below, please read.
Andrew,
Unfortunately, I am as frustrated as you. I also have about as many answers as you do. I can vouch 100% for the fact that no shares have been issued since the merge, that’s a definite. However there is no saying what happened before the merge. There’s no saying that 500 million free trading shares were not sitting in certificate form waiting for something to happen. They would appear as float just the same, but would not have an impact on the price until they were sold. The only problem I have is that they should be out of the way by now I would think. Another thing I’ll tell you is that almost all the volume looks like double printing. I been watching the level II and a few MM’s are surely double printing and that’s why the huge offer…you see MM’s have to show the full amount of what they are holding. They cannot sell what they have 10,000 shares at a time, so if a retail client tells them to sell 50 million shares at a limit of .0005 they immediately sell it to the “house” and give the person their .0005 showing 50 million shares of volume broken up in 1 million and 2 million share sales, BUT then they put it up on the board for sale at .0006! And now they must show the whole amount, which is why there are huge ask’s. So, when they sell it at .0006 or even .00055 they make the spread, and you now have 100 million in volume shown on the box for just 50 million shares sold. Right off the bat that chops the volume we see in half. In my opinion that should be illegal and the MM’s should be held accountable for not giving the client the “best price” they could get, but it is not enforced.
With that said, it can’t last much longer…the only problem is that the billion shares or so, in new shareholder’s hands are starting to be dumped because people are afraid the company is diluting…when they aren’t! It’s a self fulfilling prophecy born by fear and paranoia. I am betting on a turn around in another 300-400 million in volume. I think after the next 400 million in volume, all the old selling will be out of the way, and all shareholders will be in at around .0005 to .0009, so then the selling should subside until the .001 to .0025 range. Maybe shoot straight to a penny then. Hopefully I am correct.
Good luck and have a great weekend!
