Amarantus Bioscience Holdings Inc (AMBS)

[Riskreturn168]

Two Kinds of Longs: True Longs and Fair Weather Longs (Flippers) Flippers are a drag on a stock's upward movement. It is impossible for a small bio-med to have good news every week, and flippers take advantage of that. Sometimes companies do things that seemingly hurt shareholders on purpose, and that is to purge from the stock the short term profit seekers (flippers). The "weak handed" flippers are easy to purge, but the more sophisticated flippers are harder to get rid of. (AMBS has a lot of these; switching back and forth from hot to cold) However, there are two things that do seem to work on them: 1) Long Black-out periods without news, 2) Dilution, and 3) Talk of Reverse Splits. Shareholders who truly believe in the long term value of the company can endure these, when done within reason, but short term flippers can't. Just as a tree becomes more fruitful after it is pruned, so do stocks. Market Makers in anticipation of good news will frequently take a stock way down to get rid of the "weak hands" so it will rise to much higher heights once the news is released. My point, "Flippers" are a drag on the stock and companies and market makers employ strategies to chase them away.