After awhile both of these scenarios fizzled out. Many people realized what would happen and the old dividend and forward split scenarios didn't have as much pop as they once did.
CMKX seems to be trying a new strategy. I guess we can call it the "PR before the weekend" strategy. It seems to have worked twice to get people in such a frenzy that the stock would gap up on Monday.
I think the PR thing is a personal quirk of Urbie's. From the beginning with CMKI he's been issuing tons of 'em, most just fluff. To some extent it works by feeding the buying frenzy.
The real "new strategy" for penny stocks is in a way the logical extension of the forward split strategy. The latter could be done because the stocks that did it weren't dirt cheap: the splits in question took them from dollars to pennies. The strategy worked because many found them more "affordable" at a lower price. An illusion, of course, but there're folks out there who seem to like the feel of owning thousands or millions of shares rather than hundreds or thousands. This, however, isn't an option for most dicey microcaps these days, as they're already trading at pennies or lower.
So what's the latest? Dilute like crazy and blame it on "naked shorting". I think this one will run out of gas within the next six months or so. Be on the lookout for a new way to empty shareholders' pockets.
