Would someone PLEASE help me figure out if I'm understanding how pennies trade?? I'm very new and would be VERY greatful if someone would give me some input to let me know if I'm getting the picture over here..
I bought into this because I love the oil business. Not that I know much about it- but- my family was in oil years ago. I'm new to trading and want to learn how to take advantage of P&Ds. The number one thing I get from my research is that 99% of pinks are trash and to only trade based on being able to figure out when they'll be making big moves. I bought some shares I can afford and I don't care if I don't win on this one. It's a learning experience.
The fact that I ended up drinking some of the punch is very odd, to me!!
The punch is only half drunk because I'm extremely skeptical of this company and yet some of it is believable to me. So many things affect the price of stock and this that and another thing can have result in different effects on the PPS..
I'm trying to learn what creates buying and selling pressure.
In this I have learned to look at several things
1. The price can be affected by people who got in at a low PPS and sold during the run
2. The price can be affected by people who have been holding a long time from higher pps and who want out once they see the pps is up
3. The price can be affected by short selling which I don't really understand too well yet
4. The price can be affected by naked short selling which I also don't understand yet, but I think it's brokers and other agencies using something called "fail to deliver" shares that don't exist
5. The price can be affected by news and by lack of news (this seems to be the most important)
6. The price can be affected (and to some degree predicted) by chartists (partly because many chartists uses similar indicators and trading strategies)
7. The price can be affected by "flippers" who jump in and back out (on intraday highs and lows?)
8. The price can be affected by MMs creating false volume(??wash trading??), walking the price up and down somehow(buying and selling to each other at artificial prices?) and some other ways I don't understand yet
I have some key questions about WGAS...
1. Would they be allowed to say in the PR that the commitment letter terms are agreed to by ALL PARTIES if that didn't include Montecito?? There's a disclaimer.. Do they have to be truthful in a PR?
2. Are they going to have to give any information or elaborate at all about the commitment letter at a certain time? Apparently they only have to do so if there's a certain percentage increase in the o/s within x timeframe?
3. If they didn't have the commitment letter, wouldn't Ventana strongly deny that fact? Someone said that they'd have told me it's confidential information no matter what- but surely they'd not want some company claiming to have a deal with them if they did not- correct?
4. If they do have the commitment letter, why wouldn't they want to give us more detail? Could that be because they've agreed not to do so, yet? Could it really be because certain people want to accumulate shares? If they're looking to accumulate shares- why wouldn't they have done so BEFORE the pr came out??
5. Who made the $85k buy at $.03 right before the close, the other day? Why would they do that if they didn't know anything? Who in the world rams 85k into a pink without knowing something? What about those other sizable buys at above the ask??? There have been several..
6. What is happening with the actual publicly traded float? I keep hearing about the O/S and now there are restricted shares being issued which are a part of the O/s- but- what really matters in terms of buying or selling pressure affecting the PPS is how big the FLOAT is. The O/S increase doesn't seem like a terrible thing so long as the float isn't going up every other day, right? Restricted shares being issued seems like a GOOD thing?
My main concern is:
If they don't elaborate on the terms of the commitment letter or where we're at on the funding, the pps won't really be able to gain very much and is likely to continue falling, right? Then those fools on the Berlin exchange can short all they want, apparently? I can't decide if that is as awful as it sounds- because won't those clowns have to cover fast if we get news?
Will the news about restricted shares being issued mean anything to the market? That sounds like good news- to me- but I don't know how much that can really help the PPS..
Sorry for being long winded. I'm just trying to figure out if I understand all of this.
AI
