Electronic Cigarettes International Group Ltd fka ECIGQ

[Bernie-UK]

That's not entirely true. Everyone's shares are locked up and then released broker by broker but there is nothing to stop the company from selling shares in that time and a share collapse does sometimes happen for a while as everything settles down.

Typical scenario: - AS has shares available as soon as RS complete. Dilution machines kicks in straight away causing a crash. Broker #1 now releases shares. Panic selling ensues and people sell. This pattern can continue for a few days and shorts take advantage.

An RS is never clean without a drop unless it is for a solid reason with lots of PR before and during. I learnt to not hold during an RS a long time ago and I wouldn't recommend anyone to do it.