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Re: Tutu post# 11877

Sunday, 11/07/2010 8:31:01 PM

Sunday, November 07, 2010 8:31:01 PM

Post# of 66761
A totally independent opinion here.....I do not own the stock but I have tons of trading experience with pennys and pink sheet stocks, the MM's, the games that management play.

First, The "E" means nothing. When it comes, sure it scares people away, but when it comes off it attracts people too. When reports are delinquent or something is pending, the dreaded "E" is apllied to the stock. This does not happen on pink sheet stocks, only OTCBB or higher exchanges. Was SAEI formally trading on OTCBB? Not sure why the symbol has the "E" if it's a pinky but bottom line it means nothing. If the stock remains with an "E" for a specific duration then the exchange can take action and suspend trading or delist it. When the "E" comes off of this stock, don't expect miracles, but you will see a price increase along with volume but it will soon fade into normal trading action.

Second, I speced out the trading action, volume and price since September to Friday. The low share structure is still intact and reflects the current price/volume/action the stock is seeing. No shares have been added to the market. Because if they were, you would not see the stock in capitulation mode. Meaning the stock would not have these dramatic up/downs we are currently experiencing. If the stock was being diluted, a stock with 70M A/S, (very low share structure for a pinky or any stock for that matter), would just take a nose dive into sub-penny land, the volume would dry up and then it would go lower on lower volume. We are not seeing this type of action, so this rules out dilution. The stock is trading way above average its daily trading volume and in my opinion this volume will continue for awhile. When a stock trading 50,000 shares per day starts trading tens of millions of shares and the stock falls into capitulation mode something is up. If it nosedives and then the volume dries up, then it's dilution. This has not occured since the increase in volume has come to the stock. The recent influx of market news may have brought about a volume increase, but nothing like what is occuring now.

VERT - When VERT sits on the ask, he is there for a reason. Most of the time, VERT sits on the ask to prevent the stock from going higher. He carefully controls the bid. VERT is a known short seller and when you see the price being squashed by VERT controlling the bid/ask he is covering his short position. Once he is finished covering the stocks action could do a few things....

a) the buying volume dries up and selling volume increases, since VERT was the dominant buyer when he stops covering, the average retail trader like us has not enough buying pressure to move the bid higher.

b) If and only IF, VERT gets blown out of the water and is forced to scramble to cover his position, the stock will rise dramtically and could go higher than $1.00 in the misdt of crazy retail buying and VERTS short covering. VER could just wait it out but regulations mandate his margin call be satisfied so he must buy at these crazy prices. Eventually, it dies down but many people have made alot of money, however, the poeple buying at the top will get burned severely with a 70-80% loss withion a few trading days. VERT seldomly lets this event occur.

c) When VERT goes away, he comes back later in full force shorting the stock causing the stock to fall and fall hard.

d) If VERT goes away and does not come back and the stock is still trading way way above its normal daily trading volume, retail could enjoy the ride for many days or weeks to come. the stock could very easily climb to as higher as $1.00 and be fully supported in its price. This is providing the share structure stays intact at 70M A/S with the O/S staying relatively where it is now. You can expect the O/S to climb here.

Watch the articles of incorporation daily to check for ammendments to the share structure. If you see the A/S being modified, run for the hills. Sell and sell fast and don't look back.

It's very rare to see a pink sheet stock trade tens of millions of shares with such a low share structure. That's why people have a significant chance to make alot of money in the coming days and weeks.

What would I do going forward...

1) If I owned a position, I would not sell. I would not buy anymore shares either. We have all seen the price action and you can easily be caught buying much higher then where the stock ultimately settles at.

2) Watch the daily trading volume. If it starts to dry up, sell.

3) If the daily trading volume stays above 2-3 million shares, hold.

4) Eventually the stock will start to die down, but in the course of this action, the stock could go as high as $1 with this low share structure.


GOIG - I wacthed this stock go from .0008 to .06 in 2 months time. $1000 inventment becomes $75,000 in two short months. it stalled twice whe it hit .014 it lingered for two weeks and sold off back to .007 and again when it hit .02, it sold off again back to .009 and lingered for two weeks. Every other day outside of these two periods, the stock closed green every single day. it was fabulous. Imagine if you had invested 500,000 like I did on another stock and lost, but somebody said why invest 500,000 in a pink sheet stock, well my 500,000 in the case of GOIG would have become 33 million dollars and probably would have gone up much higher faster since I would have owned 28% of the OS.
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  • 1D
  • 1M
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  • 6M
  • 1Y
  • 5Y