ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

In all honesty, there is no need to engage in heady quant and qualitative analysis of SCRC to determine why the SP is falling. Its pretty simple fellas: there are alot of people with cheap or free stock who are selling like crazy. Why are they selling like crazy? Well, I would guess part of the reason is simply the classic lemming herd mentality where someone starts selling off hard creating a ripple effect, pulling along all the other cheap shareholders. Hell, if you got 0 cent and 5 cent stock, your still profiting nicely at 10-11 cents.

At this point, I would concur that this unfortunately is the most likely scenario.

When the fall was beginning at .21x, and even when it was fighting to maintain support at the .17x-.18x levels, it was clear that the technical traders were the primary sellers as they sold in lockstep with the downturn in the charts and other technical indicators (just as they bought in droves when the charts and technical indicators were bullish).

However, by now, any technical trader would be long gone. So logically, the question comes down to: Who could be selling at the current levels -- and not just be selling, but be "highly motivated" to sell and be so non-chalant about lowering the ask and hitting the bid?

IMO, the categories of sellers are:

(1)
JOSEPH ZAMPETTI and his mostly-criminal-horde of .05 PIPE holders

(2)
Day traders who have been simply gambling that they had found bottoms hoping for a bounce play, but when they see the sp continue to fall, they realize they have caught a falling knife and so they quickly sell out again -- and then, rinse and repeat at a lower level.

So, in essence, when you have day traders like this looking for a bounce play, the volume of shares traded over the course of a day (or even over several days) is a bit misleading because a portion of those are the same shares being churned over repeatedly by the same players.

(3)
I would say that (1) and (2) above represent the two most significant sources of selling, with a 3rd smaller source of selling being from fatigued longs, for which there will always be some at each tick down in the sp.


If folks notice, NONE of the three sources of selling above really are unique to SCRC. They are simply typical for virtually every OTC stock. Yet another reason why it has, and continues to be, utterly ridiculous and stupidly risky to apply a straight "buy and hold" strategy for SCRC...