Replies to post #22662 on ScripsAmerica Inc. (SCRCQ)

[countrmike]

Institutions are not buying this; geeze

[coolerheadsprevail]

While it is always unsettling to watch the price get hammered like this, it is a common tactic used to scare away some of the more skittish retail investors to allow institutions to pickup more shares.

We all know these stocks can be risky... just average down man...

Although averaging down is a sound suggestion in principle, I would caution folks against averaging down by simply continuing to add and hold, as this will bloat your portfolio and over-expose you to SCRC -- and as we all know, diversification is of paramount importance.

I would suggest averaging down by trading around a core position and taking advantage of the painfully predictable volatility that has been SCRC's calling card for almost 2 years running now. Don't try to time the top or bottom though, as it is nearly impossible and will end up costing you in the long run -- what I would advise is to wait for a 10% correction in the opposite direction before even thinking about buying or selling. Even then, there are no guarantees, but at least the odds of you ACTUALLY jumping in or out in the direction you THINK it is going will improve quite a bit.

In the present situation, it is a bit murky because not only should folks wait until there are indicators that a bottom is forming, BUT, because of deteriorating fundamentals, folks need to sift thru the rubble and discern whether there are any legitimate upcoming catalysts that can move the sp up in the near-term.

For sure though, there will always be traders in pennyland looking for stocks that fall quickly and speculate on a quick bounce play opportunity.


BUT, regarding the suggestion that it is a common tactic used to scare away retail to allow TUTs to accumulate, that only applies for stocks where TUTs are even interested. TUTs have stayed away from SCRC for some time now. The only TUTs that were ever involved were the professional financiers who held the convert notes, and they are now gone.

What is a more common tactic is for retail newbies to be tricked into holding by suggesting that the cratering of the sp is nothing to worry about, while others beat them to the exit doors...