Aero Performance Products Inc (fka AERP)

[ClayTrader]

Good questions. IMO, .0055 is a "revealing" support level as I'll call it. Meaning, the stock has not hit that price since WAY WAY back in December of 2006 when the merger was first announced. In order for the price to go this low, one of two things is happening:

1) Major dilution
2) Traders/Investors dumping their shares.

If .0055 holds, it tells me both of the above have stopped, or at least slowed down to the point that buyers can "keep up" with it. If .0055 does not hold, it tells me that 1 or 2 (or both) are still occurring at high levels. And to be realistic about it, if people keep seeing new lows being made, they are going to get fed up with things and cut losses and put their money elsewhere (all part of the psychology of the market). This won't happen overnight, which is why I say it'll be a slow drift.

I do agree that the 3rd and 4th quarter reporting will have impacts (whether positive or negative) on the chart, but as of now, I'm just calling the chart like I see it.