When more investors buy and hold a stock than are selling, this increases the SP, and adds to support at certain price levels.
Ultimately, a company that has a higher SP is better able to secure funding through debt.
We have all heard the saying that “stock price is closely related to the ability of a company to acquire funding.” Companies use their stock to pay off debt and often times to pay their directors.
I am simplifying this, because I doubt a more detailed, academic response would make any difference.
This company has a demonstrated pattern of behavior: pump the stock with speculation & fluff PRs, acquire funding in the form of debt that is to be repaid via stock, then doing reverse splits, all of which is extremely toxic to investors and ultimately an abusive practice.
The company builds itself on the backs of its investors.
These practices are more consistent with a scam, and that’s why many companies, in both the NASDAQ & OTC markets, are looked down on. It doesn’t matter if the company is a stinky pinky or a NASDAQ listed company; when it screws investors with shady, toxic practices, it’s gonna feel the consequences in time. What’s more, this company has the majority of voting power invested in one man—the same man that has consistently, ruthlessly, and efficiently destroyed shareholder value. There is no way to hold management accountable, despite how terrible management is. That by itself is a major red flag that will deter investors. Professionals expect that management will be held accountable for its failures, but SBFM leadership apparently doesn’t agree.
Finally, many of you are underestimating how much weight is given to earnings per share. Pros care about profit, not BS speculative science or even real science. EPS is one of the most important considerations in fundamental analysis, and this company totally fails in that regard.
