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Re: nutriman24 post# 15849

Monday, 05/24/2010 5:06:03 PM

Monday, May 24, 2010 5:06:03 PM

Post# of 51970
Correct, thats exactly how the system works down here. The company issues loads of shares to get the PR groups to put out the first, second or maybe even third set of PRs. The stock goes up, the PR firm sells. Thats why, as I stated in an earlier post, that you do not want the PPS to skyrocket on the fluff. Let them dump their shares at .0004, who cares?
Would the PR firm love to see a spike to .005 on fluff? Of course they would, but in this case they are not so they will settle for .0004 or .0005.
Now, is this bad for investors? Absolutely not, its exactly what you want to see, let them get the fluff PRs out and let the PR firms dump at a low share price.
The next step is the most important, which would be substantial news with revenues in the millions. This would bring the PPS up in a normal fashion ultimately raising the resistance levels without PR firms in the way dumping millions of shares onto the market.
An incredibly smart move by the company not to release a significant PR with so many free shares sitting out there that would drive the shareprice down on a substantial spike. This would also negatively effecting shareholder confidence causing a panic sell off by weak hands therefore rendering the substantial PR useless.

So far this is exactly what you want to see in a company at these levels