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Re: Garage12 post# 60436

Tuesday, 06/09/2015 12:28:07 PM

Tuesday, June 09, 2015 12:28:07 PM

Post# of 70075
Well this one is easy. The reason he says bottom falling out soon is not for the reasons you stated. Saying people walking away is hard to prove. Even if people were walking away it would just reduce volatility since those people are short time traders anyway. A reverse split would instantly boost share price by whatever multiple the consolidation was 5-1 + = 5x the current share price.
The reason for the alleged "bottom falling out" would be due to the over abundance of shares and the loss of optimism by longs.
Longs become traders when they don't anticipate any major rise in share price coming. When the outlook for the companies success is in question or is delayed that's the true catalyst of a failing share price.