Legal Proceedings: Reason For The Buying?
I have spoken to the few contacts I have who are familiar with penny stocks as well as Ironridge Global (if you remember, they are the entity that caused the death spiral in the share price of VELA and many other companies).
Apparently there was or is a court hearing taking place this week involving some of those at Ironridge. Details are few, however I do find it noteworthy that all of this buying in VelaTel shares has been occurring leading up to this week, all the way through yesterday.
I am not saying that this is the reason for the buying, however it may be more than coincidence. With that being said, a favorable ruling against Ironridge could mean positive outcomes for some of the companies they fleeced (if they are still in existence).
If this recent, massive buying in VELA shares has to do with these legal proceedings, then someone out there believes VelaTel is alive and well and could potentially benefit immensely. Hundreds of millions of shares have exchanged hands over the past week, and if the stock were to go "off to the races", so to speak, a tremendous percentage move could take place for those who are long.
While I will remain negative for as long as I see dumping market makers such as VFIN suppressing the share price (and diluting the float), the recent volume does warrant further examination. If entities like VFIN were to ever "tap out" and go away, this stock could potentially explode to the upside. Unfortunately, VFIN and other diluters have been hanging around this stock for years, so expectations are microscopic at best.
