DD Support Board and Research Team

[janice shell]

I think they do want the price lower because they each uptick is a higher percentage the lower the price. And penny players think they can make a fortune when something at .0004 or less wakes up with a pump so they're more receptive to the pumps.

Yes, to some extent that's true. But there's a sweet spot. If the stock's trading at 0.0004 x 0.0005, or 0.0003 x 0.0004, that'll work well for the toxic funder trying to sell, and the penny players hoping for a quick pop.

But given the large number of shares the funder is trying to dump, there's considerable downward pressure on the stock price. And the closer it gets to no bid, the more jittery most buyers become. Those with profits, take them while they can. Technically, the lenders could sell below 0.0001, but that doesn't seem to happen often. Maybe at a fraction below 0.0001, but no more than that. You don't see them selling 400 million shares to an MM at 0.00005, for example. An MM could profit nicely from a deal like that, by buying the stock at 0.00005 and selling it on the market at 0.0001.

But it doesn't happen. I'd guess that's because the MMs feel it would attract unwelcome attention from FINRA. Interestingly, in the past it did happen. Back in 2005, CMKX traded well below 0.0001 for months. As low as 0.00002. And retail players were able to get in on the fun. Some did quite well.