Replies to post #13038 on Alkane Inc (ALKN)

[chisox pat]

Trisha, my take on it is that with pennies it often doesn't follow any logic. I have had stocks which doubled or more on zero news, and in their last release they stated they have no forseeable means of making money. Others predict a 50% revenue growth and tank.

This one seems much more stable than most. I too believe it should be higher than it is based on their current position. That is a big reason I have a considerably higher percentage of my holdings than I normally have on specualtive stock on this one. I have a feeling the next few months should be interesting.

I really believe getting off the pink sheets and on to the OTC will be a major step towards this company being taken more seriously

[end2war]

Trisha... it all starts with supply and demand... begin there... what happens to demand when the news hits... and how do the owners [with the supply] play the news...

I say PLAY the news because trading is like a big game... the object is to buy low and sell high... just like death and taxes... this rule is immutable... you can't make money unless you buy low and sell high...

As to individual trades, you might want to think of them each as a zero sum GAME... someone could have bought or sold for a better price after the price changes... each wants [or should want] the best price they can get... and the MMs and brokers take a cut... so in an impersonal way, every trade has a winner and a loser... even if you made money and are happy... you may not have made as much as you could have made... and your score in the game is how you did... with your trading account being totally objective...

Now, consider the content of the news... and if it really is news... and who knew the "news" before it was announced or before you knew it... and how they are reading it... that is pretty hard... I did not like the last press release... but I was misreading its impact... the stock went up weakly on the HOPE that there will be a big NEWS announcement when Walter has his press release... but it has not been formally scheduled so there is also...IF Walter is going to really have a press release...contributing to doubt and causing some selling at the pattern neckline where there tends to be selling and "resistance"...

When the news is digested... and its impact is felt by all the readers... they trade on it... and the stock price moves in accordance with how they trade... this causes a news feed back loop in the stock price...

If the news is less than "the market" expects, it disappoints... those that bought in front of the news may sell... hence the old saying buy the rumor sell the news... others may anticapate the drop and wait to buy that news... there are a million strategies...

When the news satisfies and is what one would hope for or more... the news can propel new demand... new demand is what we all want... it all starts with supply and demand... and in a simplistic sense it ends there too... LOL

What ever the direction the PPS takes after the news... it will continue only until it changes... trite but true... so there is a lot of emotional selling or buying because of news as late folks jump in or out just before that move is exhausting...[a daytrader concern]...

Does this help... hahaha

[Mavrik]

Trisha...I'd been looking for an answer to that question for a long time to no avail. i've seen stocks jum almost 300+%on no news and others like NSDM decline on good news. personaly, I think that it is the Market Makers who manipulate the stocks. i've come to the conclusion that whenever i buy a stock it will decline and when i sell it it will increase. So now I am just patient and wait.