They are clearly watching the stock movement and anticipating more dilution. I understand that if I had my average price at $2.5, right now, I'd not be easy going. But, if I thought the company were very likely to have good news soon, I WOULD want to be able to begin making potential profit at a much lower stock price. This is why people constantly average down. I tend to adjust my positions over time, in anticipation of the dilution and potential, realistic, market caps... not particularly high ones. I don't stay in companies I think have too good of a chance of failing or are too ambiguously likely to fail, in my personal estimation. Everyone needs to make that evaluation for themselves. But I don't want to have to be a billion dollar or more company before I break even, based upon my judgment of the potential dilution.
As a general example, not this one, if you had a company with 400,000 shares, and an average price of $2.5, you would not break even until the market cap was $1B. That would defeat the purpose of being in a 30 million dollar market cap company. The reason I am in microcaps is because I get to make a lot of money on the way to even 100 million, or 200 million, let alone $1B. I hope you understand what I'm saying here. It's not always the company that determines if we make money, it's how we hold it and how we manage our positions, and our instincts on risk-reward and managing that well. But all of these companies could go caput, at any time, and we can lose all of our investment. One has to be entirely comfortable with that notion first.
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