Regarding stock manipulation... I'm a new investor and I've really appreciated the good advice from many on this board. I bought into SGBY for a long hold, understanding all of the positive events that appear to be coming down the pike. Things were looking good before yesterday, with slow, steady gains every day. Then the bottom dropped out.
Price will obviously go up after a favorable PR is released and then growth will slow or possibly reverse after there have been several days without a PR or positive industry news. It seems there are two major trade philosophies for a stock with the interest that SGBY has been receiving:
1) Accumulate shares for a long hold, knowing that company revenues are bound to increase soon, and therefore the PPS should increase accordingly. Sell after after long-term, substantial gains have been achieved.
2) Flip the stock by selling after a spike in PPS caused by a PR other other favorable news, then wait for a major dip to buy back in.
My concern about this stock, as others have suggested, is that SGBY is open to manipulation by MM's or day traders who want to sell high, then do whatever they can to force the price to drop and get back in low. When PPS stops increasing steadily, the next play is to drive the price down and jump in, hoping it will then recover with the next PR. All it takes is a small trade below whatever long-term holders have set for a stop loss to trigger a massive sell-off and resultant PPS plunge. So once the manipulators have sold most of their shares at a high price, they can sell their few remaining ones at a ridiculously low price and trigger a sell-off.
Am I at all accurate in trying to understand what's happening to keep SGBY down, in spite of all the industry trends and good news on the way? If so, is there anything that can be done to stop it? I'm almost thinking that it's going to take long holders accumulating shares when the dips happen and then going without stop losses, refusing to sell at lower prices.
I'm admittedly a trading noob, but I would like to go long on SGBY and am curious what the experts think as to what can be done to avoid the price manipulation.
Thanks.
