QS Energy Inc (QSEP)

[As I See It]

Shl468,

My theory. The stock goes down some. A few people say to themselves, "what do those sellers know that I don't. I better sell some too." Their selling makes the stock go down a little bit more. Soon another group of shareholders are asking themselves "what do others know that I don't. I better sell." Of course that makes the stock go even lower. Soon the pain of losing panics a whole new group of shareholders that are sure others know something that they don't. So they sell. And so on and so on..... If trading is somewhat illiquid, this can have a significant effect on the price. I also suspect, that most of the natural buyers have been in the stock for sometime and have bought pretty much their fill. We need new blood.

In economics or investing this phenomenon is called a vicious circle.Of course, none of this has to do with how the company is doing. Most people try to fill a knowledge or news vacuum with something.... anything. It's the market makers. It's a short attack. It's insiders selling. The product must be bad. But mostly they sell because owning a stock that is constantly going down makes them feel bad.

One last thing. We still trade in the world of penny stocks. Nuf said.