Electroglas, Inc. (fka EGLSQ)

[kingfisher1964]

MY POINT OF VIEW well as I have said in my previous posts there is very little for the common stock holders in the BK process in most cases they get cancelled but there have been many instances where it survives and performs strongly. It all depends on the major creditors and the management and in the case of EGLSQ the debt is not that high and the equity float is also too low and that too most of the investors who might have the stock must be at a pretty higher price hence little hope for survival
While on the positive side if one has to think of only one thing why did the stock made that monster move from .004 to .04 with a huge volume of 10 mio shares and there could be two possibilities one strong there is certainly some hope for the survival of the common stock and may be a possible buy out after the BK or the worst case scenario is the MMs who have been buying this from .001 to .005 levels for the last one year during this process of BK want to just jack the stock up in anticipation of creating new buyers and then go on dumping till the common stock gets cancelled now here let’s do some mathematics .

If you see the entire trading history for the last 9 months since this has filed for BK not more than 7 mio shares have been traded for whole of this period now if we have the ration of 60:40 for genuine trades and fake MM trades that brings roughly 4 mio shares and if we take the average price of buying say .003 that means the MMs might have invested say just an amount of 12k
Now just look at the other days trading with just one single day huge volume of 10.5 mio shares if we take again 60:40 ratio for genuine and fake that brings 6 mio shares as real buys, now I was whole day watching the counter and after hitting .02 when the volume of was just 2.5 mio shares the MMs went on buying till .04 till the volume reached 5.6 mio shares and after which they played their tricks till the end to scare and bring it down so if we assume the average price of these 6 mio shares to be roughly say .03 that gives their investment to 180K now if we add the initial 12k Invested for the whole year it come to 192K roughly we round it off to say 200K.

Now look at yesterday’s trading 2.2 mio shares that too in the first 25 minutes we had volume of 1.4 mio shares which was the real buy and sale volume after which for most of the day their were mostly fake trades now if the MMs have to recover that 200K either they could have done it yesterday or may plan to do it in the next coming days in that case they have to go on selling till .0001 and that too they have get buyers for that and when investors come to know that the stock is going to be cancelled they don’t buy.

So than why did the stock held almost 90% of yesterday’s trading at .015 it’s very clear the MMs don’t want to sell the cheap shares.

Now let’s see if this game has to be over than the MMs would like to recover that 200K in that case next week this stock should tank and if it holds above .01 levels than I feel the MMs surely know something that this stock may survive and would than grab all those cheap shares above .10 levels and even possibly reach 5.00 who knows.

I will tell you my personnel experience I was trying to buy vermillion at .05 but the MMs were not giving any shares finally I got some at higher bid at .09 but then when it moved I sold at .70 after which it went to 15.00 USD similarly I bought VKNG at .015 and sold at .94.
My logic is the name of the game is patience and I have held patience for this for the last one year now I know it’s a gamble for me but last 2 days of trading pattern and my skills to understand these MMs give me some surely positive thinking that this stock which I was feeling ZERO FEW DAYS BACK MIGHT TURN OUT TO BE HERO