And maybe the world is going to end tomorrow...You're dad is correct to an extent. The key thing to look for in stock price movement is the reason. The reason this stock is tanking is due to extreme manipulation and some dilution. Manipulation doesn't bother me due to the fact that it is being done to allow someone to make some big money. When they make theirs I'll make mine. Market Makers have the ability and latitude to walk a stock down as well as walk it back up. Some of what you may be seeing now is the price being hammered down in order for MM's to cover their 'naked' shorts. This is when a MM sells shares that he doesn't have in his inventory. This is legal so long as he buys them back within a specified amount of time. The most common way they do this is to drop the market and shake out the weak shareholders and grab their shares to cover at a discount. This is exactly what happened yesterday. If you noticed, the pps downward movement stopped as suddenly as if someone put braces under the price level. They don't want it to go any lower than what they covered their shorts at. Then THEY lose money. Also if you noticed on Level II the drop was stopped by our good buddy NITE. Now, the reason they would want to cover now would be that something is getting ready to blow through. This very well could have been what the two huge trades after close over the last couple of days were. Regardless of what the SEC says about insider trading and information leaks...it goes on. Always has and always will. The reason I believe this is because of all the newly active MM's in this stock. If you read my posts from the other day, I mentioned this. Unusual activity usually means change is in the air. Since this stock has been so beaten up recently, that change can only be for the better. What really hammered this stock was the share dilution last month but, that is a temporary setback. It was done to grow certain parts of the company and the market WILL absorb the new shares. Once again, this is a brand new company and it's still trying to get it's feet underneath it. They gotta do what they gotta do. But yes, you're dad is right. A stock price never lies but you need to find the reasons behind what you are looking at and take the totality of the circumstances into account. That is the only way you can make an educated decision about your investment. Buy damaged stocks not damaged companies, this company is far from damaged it's just growing and growing is sometimes painful. In any case, the best advice I can give you is to not buy something at .22 and ride it down until it's sitting at .02. Now that's moronic. Set a stop loss point before you buy and STICK TO IT. That is RULE NUMBER 1.
-Dave-
