Seven Arts Entertainment Inc (SAPX)

[sbc357]

You are correct, Nothing prevents a successful company from having a PPS take off and continue to grow on good news, further profits ...etc?
And stocks do sometimes continue to go up. It's just the odds of a gap getting filled are a whole lot higher than the odds of them not getting filled. So, traders like to play those odds, and that in itself perpetuates the likelyhood that a gap will get filled. It is almost a self fulfilling prophecy, but sometimes the company and its progress trumps all the traders, and they don't get their chance to buy back. Then the traders just move on to something else. That is why good traders have trading shares that they trade around a core position.