Snow, let me explain what you seem to be missing in each one of your recent posts. You undoubtedly see a greater volume yesterday and immediately think the PPS should rocket upwards if the float is so small. Well guess what ? That indeed would be the case if profit taking wasn't in the picture. For example, if a stock has a float of just 2 million shares and for the day it trades 1 million shares, that doesn't mean the PPS is going to skyrocket unless of course that 1 million shares traded is all buying. If there are 500K shares bought and 500K shares sold, what you have is indecisiveness. It doesn't mean the float is larger than 2 million shares.
If for example MCCY opened Monday morning and the first 300K shares traded were all buys, the PPS would most likely rise to .95 or so as it now stands. If the stock opens and the first 300K shares traded consist of 170K shares purchased and 130K shares sold, the PPS might only rise to .68
What absolutely everyone is discounting is the fact that the group referring to themselves as the MCCY Cartel, a group that owns over 15 million shares (myself not included), is NOT selling their stock. You have no idea what kind of stability this creates. These guys are doctors and high level executives, they are not traders. They are not the savvy traders that many here may be. They are big believers in the company and have made an investment, not a trade. These guys did NOT own anywhere near the amount of shares on the first run to .70 as they do now. While the referring to these guys as the MCCY Cartel may in fact sound somewhat cheesy, it's a very real thing that everyone has to take into consideration. If they didn't own the amounts of stock that they indeed do, we'd be trading at .25 right now instead of .635
So to answer your real underlying and repeatedly stated question, yes, the float really is swallowed up. Yesterday was a great day for MCCY in the fact we saw alot of folks take some money off the table and we saw new buying interest. These new buyers won't be looking to take profits until the PPS is higher. The people that took profits yesterday are now comfortable with what they have to "let it ride" sort of speak. This process will repeat itself again and again as the PPS rises. In the meantime, we have the "Cartel" who sits and waits. These guys will screw the chartists up big time who might expect the stock to trade differently and who expect it to trade more in line with your average piece of junk.
Shareholders are in the driver's seat because of the "Cartel" and the fact that the company isn't diluting. Just watch how this stock trades above $1.00, when the bid and ask begin rising in increments of .05 and .10 instead of .01 and .02 and the spread widens.
On top of all of this, we still trade with an artificial PPS thanks to our dear friend NITE.
I still say $6.50 a share in October at some point and we'll be praising NITE instead of cussing him.
If the "Cartel" breaks rank, we have a different scenario. I don't see this happening. They are wealthy people who are waiting for the story to unfold in its entirety.
"The point is that if the float is nearly gone it does not take much buying to move the stock price higher. If the float is big it takes a lot more buying. If there is strong news i assume the pps is likely to rise regardless of the size of the float."
AI
