i posted these thoughts...
in the past on other boards, and usually get booed. yes, booed, not booted...lol
My feeling is that when you get a group of long shareholders buying to continuously average down, and then we as longs watch the PPS slide for numerous days, with only a few up days inbetween, we tend to want to complain, as some have...and are expected to....
but...
i feel that IF the board went virtually silent, and the calls to the company slowed dramatically, and the buying stopped...mostly, we as longs would see the company react in a much more attractive way toward the shareholders than they do AFTER they KNOW they have a loyal base. IMO, companies in the pink sheets absolutely LOVE it when they have their shareholders, whom i don't believe they even care about, continue to average down, promote, call on the phone for information, etc.
Why?
Because when we do that, we help them SELL SHARES. we point out their chart to bottom feeders and MOMO players, we buy up the shares...and we KNOW that they need buyers for their sells, and promote the company on messageboards where many hang out to find the NEXT BIG THING.
Think about this...most of the big moves in pink sheet stocks happen before most know about it.(not an absolute but most of the time) the company is trying to bring interest and exposure to their company. Once they gather up a good group of longs, they have more freedom to move stock...because many times we will say it is MM games, off-shore shorters, toxic financing, etc. When one of us suggest that it is the company management selling...wellll that person gets fried on the MBs. BUT pink sheet companies use their stock like money! that is a known known (thanks for the quote Rummy). I am not saying something new....companies use their stock to pay for most things to promote their agenda (ie: advertising, funding, overhead, production, etc.)
THIS IS NOT NEW. so if buying is dried up, selling would also....unless of course, the MM's are in fact corrupt. THEN the company must do something to gain interest in their stock.....that is when we see movement upward.
do we believe that the stock price is going down because of the stock payments to SCE and other advertising needs? i do....
do we believe that since it is going down because of that reason, the company is buying some back? i do...(this is, of course at the expense of the shareholders)
should we average down? perhaps, but i will defer to my earlier comment of waiting for action from the company, if you have maxed out your desired position in one given stock. i would not put more in than i originally expected to......I KNOW many do put more in, expecting another run....
How about this...the increase in authorized shares....why? i believe to get funding by issuing shares to private investment firms..ie AWJ Offshore or NIR group....."why do you say that dan?" because about 75% of the pink sheet stocks resort to this type of financing. PIPE financing...
now, if that has not happened yet, i almost guarrantee you that a HUGE run will come right before any financing deal is made. check out two of the stocks that i witnessed this first hand...
Telatinos...well now it is Privada, but still Netco via ticker ("NCVT")...Dec,04...January 05
also...
IGIA, Inc...ticker "IGAI" ......July 2006
both by PIPE financing...and both by Corey Ribotsky.
Not saying that this will happen here......but this is how MOST pinks work. I expect to see something big happen here.....but what follows is a guess.
point is, this is pink land.....evil happens here.
my suggestion is to watch closely....don't invest more than you originally intended...and take profits.
Dan
Is this a good Stock?
Anything I say in the post above is my OPINION only. (Ne buvez pas l'kool-aide.)...and don't be a MARKEY.
