Replies to post #54995 on Sunergy, Inc. (fka SNEY)

[mikeymgd]

Be careful what you wish for.

If the warrant holders choose to exercise the warrants than it will likely create a rather substantial downward pressure.

Most have considered the exercising of the warrants as bullish but I doubt they have been in penny stocks for long. Based on the volume of restricted shares and warrant holders, the stock could not hold up against selling pressure.

We have an average volume of but a million or two. Imagine what would happen if PP holders become flush with new restricted shares at a discount to market and at the same time have their current shares come off restriction. It would be very foolish to not expect them to unload some of the newly unrestricted shares. Even a small 20% could have a very large impact on share price and a big cap to any run.

The run must occur prior to the mass legend removals or based on how pennies work, we will not see a significant run for potentially a year or more. Pennies tend to be effected more by float size than potential OS size. It is something everyone should keep in the back of their mind when considering timelines.

A lot of bad information circulates this board daily. For the longest time people were saying that the shares could not come off restriction while not current but as many of my posts would show I continued to argue that. Only insiders are bound by that rule and the many millions of shares floated via private placement are about to become unrestricted. By April the restricted share count should decrease by somewhere around 300m. That new increase in the float could be devastating.

The stock is a ticking time bomb and the clock is running out. They need to begin pumping this stock within the next few weeks or there might not be enough momentum to withstand the huge float increase. There are just 6 weeks till April. Add to that the negative appearance of an OS increase.

If they do become current than the warrants will have just a 6 month restriction and we would then need to keep an eye on early fall for another round of legend removals. Of course that is if they exercise the warrants by early spring.

There is still potential for a run in the stock but the clock is rapidly running out.