exactly. i feel like its more based around large groups with lots of money choosing a stock and manipulating it for profit. With enough money(and realistically, not too much), you can significantly raise the pps of a penny stock.
So said "group" slowly invests at .0001 over the course of a few months. They gather millions upon millions of shares for as cheap as possible (sound familiar?). Once they have enough, they invest loads of money into the stock at one time, shooting it up several hundred %. Obviously, this wouldnt make them any money if no one else bought it...however,
Once buzz is on the street that the price is raising, the bandwagon gets jumped thanks to nifty sites like ihub, and all the individual investors start throwing their money in hoping to ride the wave. This is the time where that group starts making all their money. Once the PPS gets to where said group wants it, they sell, and the decline begins once again.
Of course...with some fluff news, and the fact that the pps is raising so dramatically, people being to discover a new found respect for the company and what it is they're doing...And then you get the slow decline back to nothing with random message board postings asking about what the company is doing, why they suck so much, and how incompetent management is.
