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Re: Grinner1 post# 36412

Saturday, 05/22/2010 1:16:30 PM

Saturday, May 22, 2010 1:16:30 PM

Post# of 68397
You can watch AMSZ to see something similar to this one. That one is finally coming out of a very similar situation where the price kept dropping down and nobody could explain it. The major difference is that this one will move and that one wouldn't.

Ultimately what I discovered on AMSZ is that it was dropped because while the shares themselves weren't being diluted the company was retiring restricted without reducing the outstanding. They did this with 30 million shares that we know about and I believe a total of 60 million shares. This of course created HUGE selling pressure as the market was flooded with millions of shares. Does ACDU have any restricted shares they may be doing this with? That would be one very easy explanation and something that COULD be done even with a share moratorium in place.

Being that we can't short this stock but the MMs can, I can only assume that there isn't enough buying pressure for them to allow the price to move. So they are attempting to make the best of each position that their customers are in by placing orders as it benefits them. Once buying pressure increases this will disappear. But we have NO buying pressure so this is going to continue to happen. This would explain why we hover. We don't really go up and we don't really go down. They want to keep it in this range because that is what the buying/selling pressure dictates.

If the float was locked then the price would run up ON BUYING PRESSURE. It is all about supply and demand. If there is no supply (IE: float lock) then the price would have to be moved up until there was a willing seller. If nobody was willing to sell the price could run up theoretically without any real cap. Of course with hundreds of investors it would be impossible to orchestrate a run like this as everyone has a selling price.

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