Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

Amazing. I leave for a few minutes Thursday and come back to enormous volume and an up day and then I come here. What a cluster uhhhh. Oh nevermind.

I will tell you what happened Thursday. I have gone on for some time that somebody has been accumulating for awhile; several months in fact. At the same time, while they accumulate, the market makers are extremely thin on inventory. Every time they pop both sides on the accumulation equation, they have to mirror them back into their bids to offset the short. They even have more inside bids and asks not displayed than ever before for that very reason.

Now, since the Maxim Conference, somebody was out shopping a large position to buy and was looking for a seller. No matter if it was the same buyer looking to culminate the buying process or fresh blood. The result is still the same. They knew they could come into the market and squat for who knows how long and end up with nothing. They didn’t want to run it up with no floor underneath and send it back into an immediate downtrend. They wanted an initial stake and from there could buy up the additional shares to complete the position. Perhaps they liked what they heard at Maxim. Perhaps they dug further and found out for a fact any number of the potential news items we’ve been discussing is actually occurring. Who knows, it could be Kid, or Dre, or somebody associated with a pending agreement wanting in. Nobody here can say it wasn’t.

MERI was in the market two weeks ago shopping and got nowhere. Probably sent BMAS in to offer a floor and they never wavered. That is until today when they yanked to get their actual shares filled on AUTO. The buyer was looking for response and probably was the one behind the market awareness program. They knew this guy Shakerz is well known for short term moves on stocks. So, for what little it would move, it would get all sorts of sellers on the board and market makers with liquidity to get those shares. In other words, “If he can’t move it, nothing will.” Looking for any short term activity to see how willing shareholders were to part with their shares and what type of action it could or can promote. That is why Shakerz himself and those close weren’t buying because they were contracted to just create awareness. In other words, the market makers were looking to steal 2 million shares from any number of people content to see it move 3-5 cents. They moved it down to .18 to grab shares. They tried to move it up on Thursday to steal even more shares. But still nobody of size was giving in. They obviously finally worked a deal, somebody with the rest of the shares, around 1.5 million or so, that they could pry away from them.

Now let’s be logical. Think about it. Hire somebody for 4 weeks of awareness and sell a big block on the 4th day at the bottom of its all time trading range? If somebody is holding that many shares, they should have a pretty good handle on the news that is out there. You can argue all you want that somebody had 2 mil shares to dump and a market maker was more than willing to grab 2 million shares of inventory and scooped them up. Those of you that have been around for more than a few months knows the largest block to ever cross the tape is 80K shares. More than likely this was a prearranged deal like you see all the time. In this case, I’m more than certain somebody let some go for some kind of future consideration. Maybe somebody made a concession to some type of future price at much higher levels? We’ll see. But I would also feel pretty certain you won’t see an insider filing. You don’t have to look any further than the sudden escalation of negativity now that the CEO is front and center with the company and a number of “game changing” events are upon us to be able to see this is about gaining a position of size and not playing into the cookie cutter mold everyone is used to.

So, when the dust settles, what do you have? Argue all you want on the .24 print. Somebody got in and somebody made it happen Thursday. My educated opinion, somebody paid around .27-.28 to get all those shares and the market maker wiped them for around .22 to .21 overall. Therefore, he keeps the difference for himself. They always do to make their money! Technically, you have a quadruple bottom on the stock. You have the stock trading at or close to record 1 day volume; only rivaled to that of the run it put on when it ran from .35 to $3.58, that finishes up for the day, and in advance of any number of news events, and on the heels of some stellar visibility in a Conference and a follow up Conference Call. You have a strong MACD cross to the upside. You have a stock after the fact that for no sign of any enthusiasm to take it higher, suddenly has a huge buyer offering a floor at 20 cents. You have any number of shares that were scooped in the process giving other MMs some well needed inventory. Huge volume and an up day on the heels of good news and in advance of good news always leads to higher prices. And as was already said, the market makers DO KNOW the big news ahead of us and most retail investors will just sit by and watch rather than participate.

I for one know this stock tripped volume scans everywhere Thursday and that alone created more market awareness than anything else of late. Over 4000 views? Somebody knows something big is going on. And from being around this market longer than most, volume always precedes price. And in most cases, volume always precedes some type of company changing event.