Wednesday, September 15, 2010 2:38:36 AM
Any shares purchased after the Float Lock Down point is reached are shares the market makers do not have so they are either shares that are sold short or they are naked short shares, shares that do not exist. When this event occurs then the market makers job is to try and free up shares or take the market on that stock to a higher level in order to create sales of shares. If the market makers try to free up shares then they will do what we call a “shake”. They will take the stock up then short it down in order to create panic or take out stop loss orders and/or take out those individuals who have mental stops in mind. If people do not sell and hold stock for a higher valuation then the market makers will determine after a period of time to take the stock back up and try to encourage more selling. The market is based on supply and demand. If the demand outweighs the supply then the market makers try to create an atmosphere for the seller. If there are no sellers then they take the stock to a point where people will sell. And that is where it gets exciting..."
Past “FLD” examples: TUBR – about three years ago had nothing in revenues, but a group locked up the float and took it from around .11 to $ 4.00 in 14 days. Another was EVCC, same group locked up the float and took this one from .15 to over $8.00 in two weeks. It is hard to wait and not take a quick profit or panic and sell when the “shake” occurs.
Day traders and bashers come and go, but the group here, that now controls almost 50% of the float has the opportunity to make some serious dollars with a total FLD. Plus we have a real company, fully reporting and it looks like they are now making money. FLD’s are happening today with “no revenue” pink-sheet stocks with market caps of $50M and no revenue. Think of what we can do with IFXY. So……….who’s on board to make IFXY a “float lock down” ? I know I am not selling.
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