The 500% increase that you agree was brilliant happened over a period of at least 1 year: They got 12 months restricted stock and if they turned $200K into $1M in cash, they had to wait at least for that long but probably longer because otherwise, if they blew 1M shares at once they would have lost part of the gains they made over that year.
Holding stock for 1 year before they can sell it is NOT short term, selling on hype, etc. BTW, long term investors ALSO take advantage of price peaks to sell.
You had a 65% loss because the market moves up and down and in the past 18 months it has moved down, down and down. If you bought at 6.5c, today you would have a 54% gain.
BTW: Is it morally wrong to sell 10 days after buying and making a 54% gain?
<You said " If the price moves up 6c, then the return on those $25,000 would be 100 fold or 10,000%. This goes directly into the pockets of the shareholders."
That is only true for the quick traders who are fast enough to sell at that price before the stock deflates to a new low. That's not a very encouraging argument. Long term holders get left holding the bag.>
No, as I said several times already, those 6c can happen over any period of time you want to choose within the coverage they provide. Say that you chose the period from March until August. If in that period they helped increase the value by 6c (at a rate of 1c increase per month, so that you cannot say it was hype), the market capitalization, which represents the shares all shareholders have in their accounts, would have increased so that the return on the $25K investment is still 100 fold. Some will sell and realize the profit and some will hold and bet that it will continue to move up, it is up to them. I do not know what is your definition of long investment but I would imagine that for an OTC company 6 months is a reasonable time.
Also, I think we are a little hypocritical about the hype and all that... If the company signs a new licensing agreement and the despicable IR firms Gold Seeker mentions make the price shoot up, many of those complaining about the hype will take advantage of it and realize a profit. I cannot conceive stockholders saying "I could make a 300% profit in 2 months but I won't because it is due to hype".
<I wonder if Dr. Moro is encouraging the people who make placements to be sure and sell all they can the next time we get a price pumping hyped newsletter?>
I would doubt that any CEO would encourage investors to sell at ANY time. Professional investors know the game and I think they do not need to be told when to sell.
AI
