It is absolutely crazy how the buy side volume on this stock has just vanished after the massive run up. I just spent some time looking at various charts for the stock, and just about every above-average volume day over the last 3 months has driven the stock down. In other words, the sellers are out in force and the buyers have moved on to other stocks. ( I know, Captain Obvious)
I think someone referenced “toxic sellers” as the culprit, those that have financed the business through private placements or lending, as the sellers, and that may be true.
But I am not sure I am buying that entirely. Many of those private placements that were done within the last year are still locked up, they issued something like 50,000,000+ shares in the last year and usually private placements have one year restrictions. So all of these shares are not yet free to trade.
During the run up there were about 40 2million plus share days, including almost 15 days of 5+million shares trading hands. Most of these purchases were north of .20. I think the drip is the momentum investors cutting bait. In the long run that is a good thing, but in the short term it is frustrating for us longs.
Why the waste of time on the analysis? Simple, I am trying to figure out when to buy more. I won’t do it until I see some buy side volume return. I don’t care if the stock is up 3-5 cents, if only 200,000 shares are trading hands. I want to see some real buy side volume to get this moving. Until then... I will just be patient and hold on to what I have.
As a side note, Todd issued a ton of shares two quarters ago at about an average price of .04. Last quarter there were limited share issuance (2-3) when the price was higher. I am sure part of that was Todd didn’t need to raise funds, but I wish he had done more at the higher prices to limit our dilution. Maybe no one was dumb enough to buy at the higher price??
