Why would diamond merchants buy up the float? Your frustration of the pps not taking off is understood. However, if you analyze all pinks/otc stock plays, their all bs. Latest is today w/ IGTS. Pinks/otc plays are based on majority of sheep traders that donot know a damn thing about trading; and only follow the top posters, boards to determine what stocks to buy. Hype creates momo, which creates pps appreciation shortterm. ALL occur this way period.
The difference between a stock play that pops only intraday vs many days is real revenue sustaining the pps rise; and continued volume/interest in the stock with more sheep buying in to the hype, emotionally not wanting to miss out. Otherwise, pps ramps up and drops like a rock, with many bagholding and wondering why.
With that, the MM players use this and work the pps up sometimes 100-300-1000% in a day, using the sheep to work the trend. Then MM's beat the pps up causing sheep to sell off, playing the b/a down, passing on higher bids, etc. Then MM's rebuy after retrace and start process all over again. PPS uptrend based strictly on hype, momo and continuation created by sheep traders following the trend. Plus, majority of traders who create quick pps uptrend are small, spending $300-1000 a trade. These traders went to Borders books and bought "Candlestick trading", "Technical Analysis trading" books, or went to a "Teach me to trade seminar", and now know it all.
As smart traders, we must use this knowledge of what drives the pps and trade accordingly. Does not matter if its wrong or right on pps direction.
IMHO, GBDX from the start after the merger of WWCD with GBDX; there has been 3 solid trade opptys to make large gains, sell and rebuy following charts/TA and short term momo.
Currently, I see huge oppty with real, large revenue nearterm and low float w/ only 380M+- O/S count. And now the JV! This IMHO is why traders who incorrectly bought at high end of last run @ +-.025, should stay strong.
Your example of SLJB shows the bs why of pinks. SLJB was played to its high. Then retraced back with all holders blown away as to why with pending strong audited financials, etc. Then, when all hope is lost,it was ready, boom again.
I am a large holder of GBDX; and yes played the ups and downs. However, I will hold a large position w/GBDX, especially with JV news today. The very large real revenue nearterm and super small share count comparitive WILL drive the pps to appropriate levels of +.08-.15.
Best of luck to you.
Not a buy or sell recommendation. My opinion only.
