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Re: triptrade post# 7460

Saturday, 09/04/2010 2:47:54 AM

Saturday, September 04, 2010 2:47:54 AM

Post# of 20458
I'm not into this stock, and I'm only a week old in looking at stocks, but from the principles I've learned, this is a major dilution effect or consequence. There are 1.3 BILLION shares available to buy, so high supply needing even higher demand to make the product scarce and valuable. In order for the price to go up there has to be competition for a limited source of shares; 1.3 Billion doesn't convey a sense of limited supply. So to resolve it, someone needs to fork over $2.6 Million dollars and make the stocks scarce to drive up demand and the bids with it.

I'm unsure why its lowering after a buy, unless the MMs just aren't getting the demand they need to make a profit and thus lowering the bid to bring more of a demand and exhaust the supply a little quicker for a longer term rally. Of this situation, I'm unsure if its possible.