InvestorsHub Logo
Followers 10
Posts 4220
Boards Moderated 0
Alias Born 07/10/2003

Re: mcokpba post# 101789

Saturday, 09/24/2011 1:09:52 PM

Saturday, September 24, 2011 1:09:52 PM

Post# of 118239
Hardly.

My comment – So we ARE in agreement then! “more importantly less than two tenths of one percent of the OS” is causing an increase in volatility. I care. Less than pocket lint (balance of shares available and number of transactions taking place) caused a 100% rise in pps from .0001 to .0002. Hype doubled the value of his purchases over the past two weeks. My portfolio is one step closer to green.



The increase in volatility is a direct reflection of the limited number of shares being churned, it is a direct function of the supply, it has very little to do with the meager demand. Whenever the number of available .0001 shares from the company printing press drops, the MM's have to raise the ask to .0002 in order to make their 'bid' purchases at .0001 profitable. ONLY the company can sell shares at .0001 or lower and make any money, that is a fact. It is only when the company isn't dumping shares that the pps reverts to the traditional trading activity of a bid and and ask with a profit margin for the MMs. They are only interested in making trades that provide them a profitable spread. Otherwise they do not participate except to sell the company's shares for them. If there are shares being dumped by the company then it wouldn't matter if the volume was a billion shares a day. Conversely if there are no shares available from the company on any given day then a few hundred share order could easily force the inevitable .0001/.0002 'bid/ask'.

There has NOT been a rise in pps that translates into any value to your portfolio since the price you can realize is still only .0001. Since you either bought shares at that price from the company or at higher prices then you have not realized any gain at all and neither has hype.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.