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Thursday, August 02, 2012 9:06:18 AM
Well, I remember the SMKY board exploding a while earlier regarding the matter of "liquidity" and its causes.
One item which has become a fact, SMKY IS much more liquid this year than it was last.
Liquidity has increased, even though the pps has dropped.
As you can see, last year's real jump in pps came in July when the stock closed on July 1 at .099 and closed on July 29 at .31.
So many OTCBB stocks trade so much differently than "normal" (try to figure that one out in the last 5 years) stocks do for various reasons that many trading rules only partially apply.
Take, for example, the adage, "Volume precedes price." In "normal" stocks - that is true. However, we all know a general rule of basic penny stock trading is when the volume jumps AND the pps drops - someone is dumping shares. In many cases, it is the company dumping them during a paid promo.
In the case of SMKY, the shareholder who has bothered to contact the company has been informed, in a general manner, the source of where shares have originated as they hit the market. Even so, the pps has taken a real beating and is now sitting in a crater.
Those who believe that financing is on its way see these prices as a great buying opportunity. I happen to be one of them. I established my first position in May/Jun last year averaged around .06 and when we got into the .30's I remember reading many complaints from those who did not buy early enough. IMO the run last year was based purely on hopes and speculation of what COULD happen.
From my perspective, this gives me a small model that SMKY has a real capability for another run. I am expecting this next run, however, to come on financing news and will begin to create a strong platform where the pps will be established on a much stronger foundation.
Of course, the risk is obviously there if the financing does not materialize. I basically decided that I would rather kick myself for losing money while taking a chance for a tremendous potential profit than kick myself later after the pps increases and I lost the chance to make a great profit because I was afraid to pull the trigger.
We all have to play it the way we see it. Hopefully August 2012 will be a replay of July 2011.
All The Best
One item which has become a fact, SMKY IS much more liquid this year than it was last.
Liquidity has increased, even though the pps has dropped.
As you can see, last year's real jump in pps came in July when the stock closed on July 1 at .099 and closed on July 29 at .31.
So many OTCBB stocks trade so much differently than "normal" (try to figure that one out in the last 5 years) stocks do for various reasons that many trading rules only partially apply.
Take, for example, the adage, "Volume precedes price." In "normal" stocks - that is true. However, we all know a general rule of basic penny stock trading is when the volume jumps AND the pps drops - someone is dumping shares. In many cases, it is the company dumping them during a paid promo.
In the case of SMKY, the shareholder who has bothered to contact the company has been informed, in a general manner, the source of where shares have originated as they hit the market. Even so, the pps has taken a real beating and is now sitting in a crater.
Those who believe that financing is on its way see these prices as a great buying opportunity. I happen to be one of them. I established my first position in May/Jun last year averaged around .06 and when we got into the .30's I remember reading many complaints from those who did not buy early enough. IMO the run last year was based purely on hopes and speculation of what COULD happen.
From my perspective, this gives me a small model that SMKY has a real capability for another run. I am expecting this next run, however, to come on financing news and will begin to create a strong platform where the pps will be established on a much stronger foundation.
Of course, the risk is obviously there if the financing does not materialize. I basically decided that I would rather kick myself for losing money while taking a chance for a tremendous potential profit than kick myself later after the pps increases and I lost the chance to make a great profit because I was afraid to pull the trigger.
We all have to play it the way we see it. Hopefully August 2012 will be a replay of July 2011.
All The Best
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