Focus on key indicators! One imp. indicator, size of buys @ ask, shows a very positive trend setting up.
Last few days have shown w/moniter of level II intraday is that bid/ask is increasing, and most importantly, increasing with larger block trades @ ask. FACT-Share size per buy-500K, 1M, 450K, 580K; + many buys wed. @ 500K+ shares @ .007, and @ ask. IMHO, very positive indicator of where this pps could be going nearterm. And no, not smaller retail trades chasing bs momo/hype, but solid larger trades @ ask building base for a reason.
Pps decrease, IMHO incorrectly, is not based on bs dilution, or BOD not yet shown; or to line pockets of mgmt.Why?, When merger was completed and pps went to .07, mgmt. did not dump huge amts. to work momo short term to dilute. That was the time to do it and volume showed not the case. Pure demand of potential value, period drove pps up. At the time of merger, share count went up some but not huge. Yes, O/S count and float increased some w/demand. Being so low, why not increase O/S and float with demand to build value. If not, a co. must create debt by borrowing $, for GBDX to purchase inventory of presold diamonds. Better to increase share count being so minimal to begin with vs. creating debt for co. Still, GBDX has 0 debt~!!!!. Because the size of the big block buys would not fall for bs dilution, and accumulate such large quantity @ ask of .007, shows strength. IMHO, smart larger buys picking up cheap shares prior to next run.
Be Clear- why has pps declined even w/positive PR's much lower than it's real value. Simple. Sheep mentality of smaller retail traders and no increased momo created by mgmt. MM's thrive on this. My frustration w/GBDX is to have a co. w/such potential-based soley on revenue/small share count. MM's jumped on this incorrect weakness and walked pps down and down. Facts don't lie, and daily level II trades showed play by MM's consistently passing over higher bids to create downturn in pps.
Yes, mgmt. could have handled PR's, continuation of pps increase better by mitigating bs weak concerns from retail traders.
They didn't, and this allowed MM's to work weak hands over and over, thus pps declines even with strong real news. However, for some traders/bashers/what ifs to continue to state "if BOD was posted, or must be diluton, or must be a scam; or "must be no good cause phone service is"..... Cmon. Again, name me one other pink play that has been asked these questions to substantiate perceived value pps? NONE. Real value of co. is O/S, float size divided by real revenue short term. GBDX has this hands down.
With all that said, back to key-why over last few days have larger block buys come in (500-1M shares)@ ask occurred? Somethings up.
IMHO, the decline in pps happened with MM's working weak hands down and no increase in interest combating this bs decline by mgmt. being more proactive in providing needed facts to create add. interest. Does not mean GBDX factually is worth .05+. With $1.5M mth revenue/380M O/S and only 130M float, do the math.
Again, w/o any std. multiple which is usually applied @ 3-5X, pps is .14 pps.
Best Regards
Not a buy or sell recommendation. My opinion only.
AI
