Hi Vulcanized Crawler. I can't reply to your PM privately so I'll address your question here. I hope you don't mind but I'll post your question first.
"mdxx....explain why that happens before news. i love the idea that news is coming, but, explain to me and others why this happens or you have seen it before. thanks"
Sometimes, when someone suspects or knows good news is coming, rather than buying at the ask or placing a bid and hoping that it will be filled, that person will sell a small amount at the bid if the bid is significantly lower than previous support, (previous support pre split was in the .50 cent range and the bid was significantly below that at .085 cents, or .34 cents pre split price).
This is especially effective in a thinly traded stock that has a wide spread between the bid and ask, as was the case on friday. The ask was aroun 19.8 and the bid had dropped to .085. The thought behind this strategy is to risk very little of your position (165.00) in the hopes of triggering stop losses and/or sparking a round of panic selling. If you are initiating this strategy there is a good chance of reacting first and picking up cheaper shares before anyone realizes what has, or is happening.
In this case no stops were triggered and no panic selling took place, therefore no cheaper shares. The back up plan then becomes to buy at the ask since those are the new "cheap shares" which you have just proven.
Even if you are not the one initiating the strategy and it is just someone who is desparate to take a few bucks out of the market, you can still take advantage of the circumstance.
That seems to be the reality for this stock, for now, but that can change and probably will.
All IMHO of course.
Be fearful when others are greedy, be greedy when others are fearful.
