Read This Post Folks. Maybe maybe not. The thing is, from what I'm hearing, a lot of longs actually want to average up and add to their holdings and are expecting to hold for a year at least or even longer. The thing is, they don't need the money any time soon, so they can hold as long as they want to.
This stock has amazed me in one very big respect - the longs who have been holding since 0002 seem to have substantial personal resources behind them. They don't need to sell and move on, and weren't tempted to sell even recently when the share price hit the 0020's and much higher all the way to two cents. Those same longs hold some very large blocks from what I can guess.
You can see that shares are indeed in short supply in any stock by looking at the difference between the bid and the ask. The spread also changes during the day. When it's wide, the Market makers are short of shares, when its close they have about the right amount.
Another measure of how tightly held the shares are, is by how easily the price gets marked up when a buy goes through and also how easily the market makers remove the fake walls when anyone hits them.
Please also note, with the ticker and cusip change coming, If market makers sold shares they didn't actually have they'd create an NSS position and have to cover substantially higher when the reverse spilt comes around and the Transfer Agent has to account for all the shares issued by the company, agree the amount then require those with open shorts to cover them by buying in the market at the going rate. I believe that the ticker and cusip will need to be changed before the reverse split takes effect and will also have the same effect of requiting open shorts to be closed, by buying at the going rate in the open market? That is my understanding of what happens when the ticker and cusip are changed at the same time - a short squeeze quite possibly takes place on open shorts. NITE is a serial offender at doing just that is my understanding of how they work.
Also, now the 8K has come out, there's every possibility that hedge funds will start buying in to also hold through the reverse split for the NASDAQ listing and afterwards as well, knowing that the share price will quite possibly start at their minimum price to buy into a stock and carry on upwards nicely from there.
Then there's brand new investors arriving, carrying out their own DD and buying in too. I'd guess a lot of potential investors have taken this weekend to do their own serious DD and decide if they want to buy in or not. I've often heard it said that there are a lot of investors who won't buy into a stock that trades under one cent, so now they're quite possibly interested in getting in as well.
So there's also every possibility that brand new investors will be buying in as we've seen on the board by those who've declared their position. They will be holding for multiples of where they bought in. A lot of new names have been posting on the board since Friday.
All those mini dips with those 10K slaps get bought up quick enough. This traded in a tight channel after the initial spike on Friday. Seems like it's maybe time to move up to the next level? Maybe? Possibly? Perhaps?
You can see there are possibly several reasons that I believe that there will be momentum to keep the share price moving upwards - apart from the fact that there is in fact a real company with REAL revenues reversing in, not some biotech company at stage two trials that will somehow list on NASDAQ at $4.00!
Everyone should do their own DD. My views are mine only.
My post are my opinion only. You should do your own due diligence before investing in any stock or take professional advice. I am not an investment advisor. Kind Regards.
