Except the company hasn't been selling off.
Today the volume is called 'covering your shorts'.
You see, what happens here in America is the market makers attempt to control the price of stocks to give them a market cap that is fair and equitable for what the company actually produces. They base their decisions on forms that have been filed, proof of income, prior quarterly results, confidence in management, and other such criteria.
When the stock ticker under the symbol of TSAS initially ran from .002 to .55 on February 11th, they allowed it to do so because of an erroneous claim on their 8k filing during their change of ownership. They believed at that time that they would be reporting serious revenues in the order of (I believe) 25M/year or such (can't clearly remember, but at this time it seems ludicrous they would claim that).
The decline from .55 to .01 (hastened by the 3:1 F/S) was overseen by many investors pulling out, day traders getting out of a sinking ship, and investors shorting very small (comparably) amounts on the decline. Also sometime between 02/11/2011 and 03/01/2011 the company diluted an additional 15 million shares, confirmed.
At the time of the first conference call, the market makers didn't know what to make of the stock yet, as they had only had the opportunity to post a singular quarterly statement that had exactly 11 business days on it. The conference call was full of hope and promise, and they were very open about deals they had already cancelled. At that time they thought they weren't getting screwed by everyone they chose to engage in business with.
The Stock went from .01 to .028 in a couple days on no news, only the conference call. The market makers let it go because nobody truly knew what the company was worth at that time. There was an S1 filing on the near horizon and oil fields, a refinery, millions of barrels of oil products being shipped over for immediate sell to eager parties, and a management team who had all the contacts they could hope for to start a successful energy company!
Then the day came when the company curtly told the SEC that 'We can't afford the way you're jerking us around on this S1. We're only three months old, yet we've provided 10 years of financials from a company that was apparently run by circus animals and still you won't just TELL us what you want.' It was understandable, and they actually avoided filing the S1 AT THAT TIME because in order to do so would have been ridiculously expensive, dilutive, and could have gone on for months while hundreds of angry investors called their poor IR guy and reamed him because they're losing money.
Let me make this clear: THEY DID NOT LIE TO US. They said they intended to file an S1. They began the process to file an S1. They were unable to fulfill their end of the deal because of unforeseen issues with the previous shell. They PROBABLY (who knows) did the right thing by NOT following through at that time. We pay the price now, but they can still fix it (assuming the new boss is different from the old boss).
Then the day came, Q2's! Yay! It's time for them to report... oh wait, what's this? A shareholder letter, an apology for bad earnings before the Q2 is even out?
Ok, now the market makers know that this company is not what they claimed on their initial 8k. They have no business sustaining an $8M market cap, and it's time to revalue the company. Since then, runs have been hard-fought struggles and the market makers have shorted more than a billion shares (just in the last 3 months) to restrict the market cap at a level befitting what the company has demonstrated that it's worth.
Without filing SEC paperwork to confirm the existence of one deal, one screw of hardware, or one dollar of revenue, the market makers have no choice but to assume this company is 5 guys in a slum apartment spitting on the ceiling and scratching themselves. As a result, no P/R subsequent to Q2's they released was taken seriously by the market makers, and they shorted like there was no tomorrow - over 1.1 billion shares since the beginning of July - to hold the price in the bracket it belongs based on REAL, PROVABLE INCOME.
Upon further reflection and research, moving the stock to the FSE may be a short term solution but it does not resolve the problem. MAKE MONEY, FILE THE FORMS, AND THE PPS WILL GO UP ON ITS OWN. The market makers are only holding it down to what PGIE is proving that its worth.
Shorting DOES NOT EQUAL DILUTION. With an actual trading volume of less than 850M over the same period once you remove market maker shorts, the levels of dilution being claimed are simply not possible given the amount of investor interest they have garnered over time.
With Q3's right around the corner, and expecting to post *nominal earnings, chances are the market makers will continue to hold it down.
At this point even if they close the deal for the rigs, even if they're produced for pennies and PGIE manages to get 30 million dollars out of the deal, if they continue to refuse to file forms, the price will not change. It will continue to move laboriously, and before long we'll be locked out of our shares simply for using the wrong broker because life isn't fair here on the American stock market.
In America, they (the market and the investors) actually want to see results. I know, that's terribly unfair, and a reason to run overseas with a box of kleenex and a copy of Dianetics. Suck it up. Admit you're getting what you deserve and do better.
Do better for all of us.
*nom·i·nal: [nom-uh-nl]adjective; (of a price, consideration, etc.) named as a mere matter of form, being trifling in comparison with the actual value; minimal.
(I think maybe they should have looked that up in the dictionary too, since the actual value seems pretty close.)
AI
