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Re: thebobber post# 48717

Wednesday, 09/23/2009 7:09:14 AM

Wednesday, September 23, 2009 7:09:14 AM

Post# of 111729
Exactly, until clarity is achieved this is going nowhere. That sticky at the top is not clarity, it is only a solid reminder that poor word usage and lack of finer details cause conflicted results. People fear an RS for the simplistic reason that you lose share count and therefore earning power. You can list reasoning all day long as to how there is no difference, the bottom line is a run of .10 is much more powerful with 50,000 shares than it is with 5000 shares. You can say the stock will make larger movements when it is selling at higher prices, but that is not necessarily true either, there are many stocks out there that trade only pennies a day when they are at .50 to $2.50. One that sticks out in mind was C (Citi), it traded within a narrow range in the $2 area only .04 or .05 a day, not exactly huge swings like people make it out to be.

People want to see this stock reach $1 to $2 with their current share count, not by lopping zeros to achieve the goal. You may say they are not looking out for the overall good for the stock, they did not invest for the good of the stock, they invested for their own personal reasons in which you cannot debate it with them.

Psychology plays a huge role in stocks, and yesterday was proof of that. There was no manipulation occurring it was people selling, it was mostly small to mid sized blocks with an occasional large block, at one point 700,000 shares in 9 seperate bids went out in under 10 minutes. The lack of clarity within the PR left most doubtful with what they had purchased, and it goes right back to what I said here in the beginning psychologically speaking, people feel more shares is better than less shares. Most interpreted that you were gaining shares because of the word “BONUS”, take away that and you get results like the last two days.

If that last line had been left out about shares, this would be sitting much higher. That should be a seperate PR on itself with extensive information about share structure.