MMEX Resources Corp (MMEX)

[jmjjw]

Let me make this simple. People don't invest in penny stocks. They trade them.

This serves to further emphasize that MMEX is nothing more than a share selling scheme, vs. a legitimate company.

Play the momentum. For example I bought a ton of share sub penny knowing that there would be momentum once the permits were approved. And it worked. Permits were approved and the stock went up.

Shares of legitimate company do three things; the float with the market in general, and move up, or down based on positive or negative material events, like earnings, technology, management team changes, etc. In the permit example, the $100 TCEQ administrative permit isn't material - any competent analyst knows this. In the MMEX case, the market is reacting to virtually nothing.

And then, you guessed it, it came back down because momentum was over. Now the next momentum was the groundbreaking. People trade the stock with hopes financing would be announced on or around the date of groundbreaking. So the stock went up with anticipation. Well we didn't get financing news, so guess what? Traders are gone. Hence the massive drop in price.

Momentum on the basis of fantasy... again, MMEX's groundbreaking was very much cart-before-the-horse - any legitimate company would have first secured financing, along with a few other material things, then conducted groundbreaking. Running the PPS up on an empty, non-material event (groundbreaking absent financing) is specious at best.

See from a traders standpoint, if they didn't announce financing at groundbreaking then there's no telling when they will announce it. So what you're going to see is a slow decline of the price as people who brought in during the last momentum run become impatient and start to leave.

So the games at the MMEX casino become boring, and failing to entertain traders move on.

So if you think financing will be announced eventually, then start accumulating at lower prices. If you don't then there's no point in being here

Share selling scams depend on a sufficient number of suckers/bag holders in the game to generate volume and volatility. The unfortunate aspect of MMEX and similar scheme relate to the bag holders, who don't understand that MMEX is more similar to a roulette wheel than an actual company.

If the potential bag holders figure out they're on the wrong side (i.e. not the house), and don't pay to spin the wheel, things like MMEX collapse quickly.

This sentiment simply reaffirms that no topping unit, let alone complete refinery will ever be built by MMEX - it will never cross the first real hurdle of obtaining financing, so MMEX's wheel is at best coasting down, if it hasn't already stopped turning.