The answer is actually called "pump and dump". The company usually do this when their planning a "reverse split". The way it works is the company would sell a large number of shares which would eventually cause "PPS" to rise for a momment. The company would try to sell as many shares as possible @ the highest price, in our case .0006. Once they sold all they could @ the highest possible price and the "PPS" fall below what it was before the "pump and dump", the company would then conduct a "reverse split" which usually put the O/S @ the original number before the "pump and dump".
Example:
1. Let's say the outstanding shares before the dump was 200,000,000 shares.
2. The company is short on money so they dump about (2)billion shares. They probably made (1)million dollars by selling these shares @ up to .0006 per shares.
3. Now investors are screwed because (2)billion or more shares have been put on the table over already 200 million shares. Now the little money which was divided up by the 200 million is now being divided up by 2billion and 200 million shares. This caused the "PPS" to be reduced to .0002 per shares and falling.
4. Now the company do something like a 10:1 reverse split to put our outstanding shares back at the original 200 million and then the "PPS" continues increasing by all the trading, Press Release...
Hope this information was helpfull.
