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Re: kenpel post# 4830

Monday, 03/19/2012 4:10:51 PM

Monday, March 19, 2012 4:10:51 PM

Post# of 27968
It may make sense to the new company, who wants to start at a low pps. Every trader knows that the pps will spike and then level after 3-5 days, I am sure the new company will want the "new level" to be higher than when the announcement was made to show how strong the new company is.

If the R/M is announced at, say, .35 and it settles back to .45 after all the wild trading days, it looks like the new company is no better than SNRY was.

However, if the R/M is announced at .12, for example, and in a couple weeks when the dust settles and the pps stabilizes at .42, the new company can claim they are much stronger than SNRY.

It's obvious the pps is being manipulated, just looking for sensible reasons as to why. Only $40 brought the pps down over 80% - but anything which happens "pre-R/M" won't really matter in the long run.

All The Best