I have a strong belief in SFOR patents, products, contracts, and management as well.
Trust me when I say it's sometimes hard to divest a position for profit when you have so much faith in the upside.
Penny stocks are easy...they're the easiest thing in the world.
SHORT THEM or always let a bearish bias guide you.
99% of them are dilution based, stock schemes where the only winners are the two employees who identify themselves as CEO's and their debt cronies. Everyone else in a penny stock ultimately loses in the 99%.
SFOR, I believe, is the 1% so I do struggle with bearish calls...but then I remember this:
Penny stocks all have convertible debts. All companies do, BUT a penny stock CN's or SCN's (senior convertible notes) have a much more direct impact on the share price due to; low liquidity, low share prices, the sometimes dramatically toxic details of the notes, and typical low volume trading days...not to mention, penny stocks typically have less than a few hundred total shareholders and vastly far fewer "accredited" shareholders as compared to a tougher short (AAPL) with thousands upon thousands of both types of shareholders (currently short AAPL with OTM $92's)
All of that means this: a penny stock has a natural direction, which is lower. Without news and without a very strong base of Bulls with lots of capital, a penny stock will test support levels and break through them and continue to do so UNTIL a catalyst lets Bulls overwhelm convertible features of debt AND the shorts who'll pile on at the apex of a Bull run. Not to mention, Bulls have to always have the daily cash to buy to usurp the traders who choose to divest for varying reasons (beer money, impatience, etc.) on a daily basis (like today with SFOR... Not enough "regular Bulls or new Bulls" with cash on hand to beat the Bears...hence a lower stock price).
What I've written here is not my opinion... It's math, aligning with capital market financing theory.
So, there you go. There's 6 years of college and 20 years of professionally investing wrapped up into one short Ihub post.
If it helps, I've outlined in two previous posts where I'll start buying again. At this point, I'm fairly confident that I can re-buy my shares plus any profit from my last sale at steeply discounted prices.
By the way... On a side note, a less formal note... I disagree with Mr. Kay. He has an ample supply of tools at his disposal WITHOUT a pump and dump protocol to support the share price.
After all, he's the one who wants to sell the company or the patents or licenses right? Well? The last thing you want to do is let your share price sink if you're looking for maximum value.
Some tools he's not using:
1.) issue a press release details any AMZN "glitches" and their resolve to fix those glitches.
2.) issue a press release with unit sales guidance versus the rumor of a glut of product sitting idly in some warehouse.
3.) issue a press release detailing the 2016 10Q date.
These are just a few tools he has where it's not a P&D so I disagree with him as he lets his stock free fall when he could lead from the front.
Oh... And:
4.) A press release saying "we know loyal shareholders have sat through 4 reverse splits. While we felt these moves were in their best interest, we realize how damaging these moves can be. The board has decided to buy back shares or offer a cash dividend or offer a share dividend using some of the proceeds of our latest Patent litigation win.
(That'd be big! That'd be a huge level of "Lead from the front" stuff on Mr. Kay's part.
Anyway...
Trade well.
Insert smiley face here
