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Re: lowman post# 54239

Thursday, 05/31/2012 8:29:23 PM

Thursday, May 31, 2012 8:29:23 PM

Post# of 232507
My experience is a bit different than yours. IMO, shorting and Pinks/OTC go hand in hand, with or without dilution. They are like peanut butter and jelly. Pinks/OTC/micros can have very high trading volume but virtually always very small dollar volume compared to NASDAQ/AMEX/NYSE stocks and therefore can be more easily controlled. Control of a stock means making money.

If VC's, MM's, Investment Groups, and others with the capital think they can control a micro and move it up and down so they make money, they move in and do it. I believe that is why you see the wild swings with huge runs up and hard pullbacks on Pinks/OTC's. They can be controlled and they're money machines for those with the capital.

I think KMAG is a very nice stock and for a Pinkie an amazing stock. However, IMO it has traded oddly ever since I've kept track of it. Larger players have been in control of price movements almost all the time. Watch it get capped with a huge sell order when it has run a bit.

Go look at big board stocks and see what percent of their shares are shorted. Then pick almost any active Pinksheet or OTC stock and notice the huge disparity in shorting percentage. It's night and day different. http://otcshortreport.com/MSFT

KMAG isn't diluting IMO, just the opposite and we will see that tomorrow. We will see a very modest share buyback IMO and lower OS. The important thing is they are taking shares out of play and telling the truth creating integrity capital.

My hope is that Mr. Reid leaves the buyback open so that shares can continue to be purchased by him or KMAG as funds from growing earnings become available. A reduced OS and exponential growth will create a tough company to control.