The stock is going down from dilution, right? Well, not just dilution. The sector has been absolutely terrible. There's a few hundred companies out there trying to make it big in the pot/cbd sector. Most of them are doing well and growing, but the stock prices are seeing new low's this summer. Many have to R/S and dilute to continue their operations just like OWCP. But also, many of them see big days just like OWCP saw recently when it went from under .02 to .03, more than 50% gain. So, most investors here think they know exactly why the price is this low, and that it will continue lower well under sub penny, but there is a factor most are not considering - the health of the sector overall. Some of you may remember posts by me in the past, up to 2.5 years ago. I'm a trader and make a living profiting from short term stock moves. I like to accumulate positions on their downward spirals (falling knives), and if they go lower than I think I add more shares and wait. I have been hurt by this but overall most stocks make me money when they eventually return to previous prices 100%+ higher than their lows. I have mostly been out of OWCP the past year or so, because it's such a slow mover with so much uncertainty and lack of excitement behind it.
But back on to my original point regarding the sector - out of my list of over 100 tradable OTC stocks in the MJ/CBD sector, over 90% of their stock prices have not grown the past year/year and a half, but the companies themselves are mostly doing ok and making progress toward their goals. Some have even seen increased revenues and the stock prices still struggling. So with OWCP, by comparison to all the other stocks, it's not that surprising to me the stock price has fallen so much given the lack of news and excitement - a driving factor for big prices moves as most people know. However, in the past 3 years since legalization and such has been increasing, the sector should be growing but it hasn't. So the long term trend has been down, which effects all of these stocks. This is a fact, I see it every day with my own eyes as I watch how companies prices should be going up but they are going down. I believe this to be the result of market makers pushing prices lower when regular people out there are absent and volume is low. But why would market makers drag the prices down? Obviously, so they can make a ton of money later, the only way to make money in any stock for both traders, investors, and market makers, is to buy low and sell high. I believe they have a system in place that is nearly flawless, a system of ups and downs that they control and change at will to profit at the expense of investors and traders. And when companies R/S and dilute it helps them a lot to drive prices lower and keep them low.
What does all this mean for us? Well, what goes up must come down, what goes down must come up. What will turn this stock around as well as 90% of others is a market correction. The long term downtrend should eventually turn around and a long term uptrend should start. One by one, these hundred+ pot stocks will see massive volume, most of the time unexpectedly, and see 100%-300% gains in only days time. People that aren't watching the sector will come up with whatever reasons why their stock is moving up so high. Most of them will be wrong - it will be market makers and their tricks, but the prices will go up. Temporary? Probably, but as long as shares are purchased cheap enough, even the crappiest of the otc stocks will move up minimum 100-150% of their bottom prices.
When will this happen? Well, the past 3 years it usually happens after summer, followed by a downward correction before December, and then a rally again before the year's end. I believe this is mostly market makers driving prices higher because more non-MM volume coming into the stocks. So they get overbought and traders and investors get in at prices much higher than their bottoms, and the cycle repeats so MM's can make their money.
If you are trying to exit your investment, I suggest playing the game, changing your strategy from buy and hold to playing the fluctuations. Don't think you know why ANY stock price is moving, every move is all tricks, with the exception of a big move immediately following news - that is probably regular people buying up the shares that day.
I don't know if OWCP will see a big pop again, but if it does that's where I will sell most of my relatively small position, and if I'm lucky, the price will go low again so I can buy my shares back and lower my risk. It's not smart to sell low, it's smart to sell high relative to low prices, and of course low and high are relative to the time period you are trading. The long term low for this stock can be .0001, or it can be .01, who knows, but the sector health gives the hint when these stocks are ready to pop.
