DNA Brands Inc (DNAX)

[Ed the Trader]

"Hopefully we'll see high volume again this week and a few more tics up!"

Nope. The high volume lasted for 2 days and now, it is over. It will be back for 2 or 3 days in about 45 days. Even then, DNAX will not get above 0.0002 at that time and that PPS will only be for a small amount of the overall volume. The overwhelming majority of the stock sold then will be at 0.0001.

The PPS of DNAX may surge in 2016 if management announces their new planned product then. Because they still do not have any funding for this product, it is unlikely that they have begun substantive work on it yet.

It is possible that we do hear this year that DNA is debt free. These volume spikes every 45-ish days are allowing DNA's financiers to sell large blocks of newly printed stock to market makers who then sell it to the market at large in the month and a half periods in between the huge spikes in volume. We can figure that it must be market makers who are purchasing most of the stock during the big spikes because market makers are the only ones who could absorb that kind of volume in just a few days. Undoubtedly, the financiers are paying a premium fee to the market makers to get them to agree to absorb such large blocks of stock at market (0.0001) price.

The announcement that DNA is debt free to come later may be enough to pop the PPS up a bit, but the PPS will then likely drop back to 0.0001 pretty fast. Dilution ultimately always has its impact on PPS and without performance related news this stock does not deserve to be above 0.0002 based on its probable level of dilution.