Sanwire Corp (SNWR)

[glenrice67]

Above average chance to see the stock retrace to .55-.6 since it held .45. It may even go higher because the market cap is so low. Eliminating fundamentals from the discussion (which I believe to be nonexistent, though some may disagree), the pressure is going to be substantial to the downside eventually. You have a stock that is 40% controlled by insiders. Just a few weeks back there was no market for their shares (See Volume from May 12 onward http://finance.yahoo.com/q/hp?s=NTMG.PK+Historical+Prices ) These people control $8 Million dollars in a company that has never produced revenue but now has a market and liquidity . Even under the rosiest scenario where the insiders believe they have a legit business, they are going to sell shares. Most likely they are going to dump heavily. The company has zero cash. Operating mines costs money. This makes a dilutive financing inevitable. Finally the volume is in the millions. For a stock to continue to have fuel, it has to have buyers. When was the last time you saw a penny stock that maintained volume in the millions for a substantial period of time. At some point people lose interest and there is only so much artificial insider buying and selling to create volume (of course that never happens with otc stocks because these people are so honest and ethical.) There is only so much news a company like this can release. Even if they are real, they aren't projecting revenue until 2011. Volume is going to dry up well before 2011 and the share price will inevitably drop just by sheer lack of interest. I think the company is totally FOS and will not be profitable ever, but even if they are the share price is still going to be lower in the coming months than it is now.