I hear you but you have to also know->
You wrote: “MARKET CAP IS WHAT THE CURRENT BUYERS AND SELLERS BELIEVE A COMPANY IS WORTH. If this number is lower than expected then buy, if higher than sell. “
Belief does not dictate a market cap, the share price does.
Your statement is not accurate because buyers cannot accurately make the assumption the company is worth that much and if they do it would be based on a fraction of a second as shares trade.
If you say OK the market cap is $16,000,000 at $.002 and you buy the shares at $.002 then you must believe that to be true and 10,000 do the same and buy at $002 and hold.
A minute later the stock drops to $.0015 due to one sellers bid sale.
That belief now no longer holds water because that so called belief is now based on as little as one investors sell order out of 10,000 or more who own shares that did not sell who paid $.002. That means one seller is telling 1000’s their belief is wrong.
If the stock drops to $.0015 on one investors belief and you still believe its worth $.002 do all 10,000 rush to buy more till it goes back to $.002? then one sells again at $.0015 and the cycle continues. Meaning you keep buying to defend your belief?
Also what regulates the share price and market cap is out of investors control when the company is diluting yet the price stays the same. If the shares went from 4 billion to 6 billion and the price stayed pretty much at $.002 ish, then the only answer is investors have no say in the price or market cap only the debt diluters do.
That is why all the belief and all the hopes and intent end up proving my point, no one dictates the price on pumped stocks other then the ones selling the shares and NO ONE is selling other then the company at this point in time.
You may see a large sale on the bid but trust me it is not from an investor its from the debt diluters. And they regulate the price so you cant sell and wont sell even if you believe it will go higher you have to see it won’t due to the dumping of shares to keep the price and your beliefs hostage.
Let say not if, but WHEN the 10 billion are sold and the stock is at $.0005, the market cap would be only $5,000,000 and dictated only by the company and how they diluted and not by any investors beliefs.
If people did believe the stock will go higher that can only happen if others buy higher to raise the bid that will never happen here. With 10 billion out and the marketing shut down (no reason to pump when there is nothing left to sell right) the demand drops, the market makers drop the bid to $.0001 But do those believers then buy up all the $.0001 shares yet again cost averaging all their money away.
If your logic is true, the only way to keep that belief alive is to keep cost averaging down more and more. But doing that you have to know it will hit bottom and not go back but reverse merge.
The ONLY way to make this work is to STOP the debt conversion rule and that stops the dump and dilute. If that rule was in place and SGMD only had the original 200,000,000 float at $.10, they would have run out of money and folded. This is a share selling operation not a company on the move to greater pastures.
When they dilute the entire 10 billion and people still BELIEVE that the market cap should be $.002 still, they will authorize another 10 billion as long as your logic keeps people spending money, OTC’s will be right their and be happy to take that money from investors.
:)
