EFuel EFN Corp (EFLN)

[Oz the OK]

Can the stock get to .0000? Is that possible?

On the bid side, yes. They call it, surprisingly, reaching "no-bid status". Nobody is willing to pay anything, or at least .0001, to buy the stock.

Here's the problem with some of these stocks once they get below .0003. It can sometimes be impossible to break above that again. See, the MM's will just continue to short the stock, keeping the price down. Why? Because the debt holders, 99.9% of the time, have minimum stock prices built into their convertible debt. If the stock falls below a certain threshold, they can demand the company do a R/S. Once the company does a R/S, the MM's that are shorting it make out like a bandit, technically having to cover at a converted R/S price way below .0001..so it is best for the MM's to just keep the price down until the inevitable R/S is demanded.

Now lets say that happens here with this stock. It goes to no-bid...the convertible debt holders demand a R/S as per their note agreement...the board is forced to do the R/S...and the board/management/lawyer's asses are covered. They can state, "hey, we had no intention of doing a R/S, as we told you and even made legal with our June filing, but we were forced to do this by our debt holders do to the trigger price on our stock as per our loan agreement". The R/S happens...then the MM's cover and make a nice chunk of change, the debt holders can convert their note/convertible shares into huge blocks of common at a higher price and immediately sell it, and the management and board can start the dilution cycle all over again, driving the price back down right after the R/S. The only people who don't make money, are the shareholders.

Now..this is extreme, and I don't see it happening with this stock, especially with only 750 million A/S...it usually occurs with companies that have billions of A/S...but technically, it could happen and people should be aware of the reasons why when it does. We might get a bounce tomorrow. With all the angst that is happening, it could be attracting the bottom buyers looking for a quick flip, but then again, it is Friday, and the way this thing has been behaving lately, people may not want to hold it for the weekend. I honestly don't know nor can I read it right now, which is why I'm on the sidelines.