Replies to post #298506 on Bioelectronics Corp (BIEL)

[rodman]

F the short sellers bottom line! Total manipulation should be fined and banned by SEC! Get off your arse SEC and do your job!
$TILLABELIEVER$$
$1.+

[JNdouble1]

An interesting theory...

One that can neither be proven or disproven. Let me offer another plausible scenario (borrowed liberally from what was previously posted)...

BIEL releases a PR with good news of an FDA Clearance or a new OEM Partner.

Trading volume rises as investors want to own more shares.

The SP ticks up from a .0008 Ask to a .0009 Ask.

As the demand continues shareholders start selling shares at .0009. There are 25 billion shares outstanding, and many (most?) are held at a cost basis below 0.0009. Shareholders that want out only need volume, and don't really care if they sell at 0.0009, or 0.001 because they bought at 0.0006 or less (there was a recent discussion of how many shares were bought up at 0.0003 for example. That would be a triple your money trade to sell at 0.0009, not bad).

The seemingly endless supply of shares at .0009, it can literally seem bottomless as there are 25 billion shares in the OS, causes the positive Investor sentiments to fade and BIEL closes at .0009 . (how many times have we seen an Ask Size get hit with millions of shares in Buys yet not go down at all or go up).

After a couple of days BIEL drifts back to .0008, the volume dries up, and anyone who held out for higher prices kicks themselves, and resolves to sell during the next spike.

So here are two scenarios to consider. One that requires a conspiracy involving established brokerages breaking the law, and risking there license to operate (however small you think the risk is, it is still a risk) to make a 12.5% profit on a triple zero pink sheet stock. The other that only requires existing shareholders to sell some of their vast holdings (25 billion shares held at retail, did I mention that it's 25 billion?) into a price and volume spike.

Neither theory can be fully proven under the scenarios presented, but I for one will be placing millions of shares on the ask when and if there is a price /volume spike. Maybe following the next good news PR.

[JNdouble1]

Question regarding your theory

The scenario that you described has the MM's selling a "seemingly endless supply of shares". This is described as happening during a spike in volume following news. Then after only a couple of days, you posit that investor sentiment declines so much that the volume and price tank back to where they started.

At this point, the MM's start buying to cover the "seemingly endless supply of shares" that they previously shorted. Presumably they are buying from all the new investors that just bought in during the spike. I understand that the "true" longs are too tight fisted to sell under these sorts of circumstances.

My question is why doesn't all the buying to cover show up on the charts, either in volume or price?

Also The scenario you describe is not at all what happened back in late 2020, early 2021. The price went up nicely, and stayed up for a long time. We were at or above 0.003 for 7 or 8 months. It wasn't until financial results (reflecting the pandemic difficulties perhaps) started looking bad that the price came back down to where we are now.