Within the last 3 months we were at 7 cents. The stock has been systematically taken down mostly by small drops of less than 10% per day. Why less than 10%?
If a stock is down more than 10% in a single day and there has been short selling on it, supposedly FINRA regs issued earlier this year require the short position to be covered within 13 days.
Otherwise there is a Fail to Deliver which is reported to the SEC and appears on the SEC FTD list.
At least this is my understanding of these regs although I am not an investment attorney.
It is easy to see how anyone holding a short position on this stock has benefitted. From 7 cents to 2 cents, making money the whole time and not having to cover as long as the daily drops do not exceed 10%. For example the stock yesterday was down just over 8%.
Well in the last 3 months the company has not really given us all that many reasons to expect shareprice to go up. Who knows what would happen if they actually pulled out their finger and buying pressure came in. The squeeze could be substantial, given the cumulative short volume which has not been covered for 3 months.
A few things would have to happen.
Existing shareholders would have to hold tight to their shares.
The company would have to make a genuine effort to prevent any dilution which would include not using shares to pay for operating expenses.
We'd have to see some continuing improvement in the bottom line (financials). It HAS been getting better but not so much as to cause investors to sit up and take notice.
Some form of promotion would have to occur and by this I don't mean a paid pump but ligitimate press releases on multiple channels not just marketwatch or whatever but mainstream news outlets such as Reuters and trade publications related to agricultural business.
The company currently sells on the Frankfurt Exchange. It should be noted that Germany has recently outlawed Short Selling and this is part of why Germany is undoubtedly the least affected by the European Debt crisis and the strongest of the EU nations both economically and politically. Well the company would have to get more volume going on the FFT Exchange which would outweigh the short selling on the OTC.
And of course, Joint Ventures and production of the companies products has to occur: neutraceuticals, livestock feed, canola oil, biofuels, etc. etc.
Everything else about what happened in the past and who the execs are and whatnot is really so much noise that feeds the bashers.
