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es1

06/07/12 1:21 PM

#45966 RE: TheHappyVulcan #45962

you are correct. You have to look at the big picture. DD is very important in any stock. The problem being this is the pinks. 99.9% are scams or they are companies run by people with no business sense.
Everyone wants to say that their stock is the one "real" pink.
I tend to look at it as 100% are scams and if you buy you need to take your profit.
With that point of view the DD here is irrelevant. If you assume that all are scams then your PRs and DD must be lies. The only thing that you can be sure wont lie is a chart.
Well the chart shows that as of a couple years ago 200K volume would move the PPS by as much as .04
Now 100M doesnt move it.
That is proof of dilution over that 2 years.
More recently 50M would move the PPS as much as .0005
then we have a sudden 400M show up on a crash and now 50M wont move the PPS at all.
If the company can not get the PPS to move on a 100M day they will not be able to use their shares to profit or pay for pumps. They will have no choice but to RS.

I have not even looked at the company info yet but would guess they have around 4 billion AS and 800m os. I will be checking as soon as I post this to see how close I am. That is just a guess base on what the chart shows.

I do like to look at all aspects of a stock before buying but the chart is first. It is easy to see and it doesnt lie or mislead you with pretty words like a PR can.
I start with the chart and continue with my DD till either I buy or find something that tells me not to. In this case I didnt get past the chart. The last 50 days of trading was a big flag for me

Person mark for you. It is nice to see someone willing to converse about the bad as well as good.
I wouldnt mind hearing your take on the positive. I will freely admit My "dd" could be and is lacking.

EDIT: After looking at the OS I conclude that I was right and that this needs a hell of a lot more volume to move. A 2.2 B float is a ball and chain. I have a hard time calling it a "float" LOL. At least the AS being 4B is enough to hold off a RS for a while but they need a pump bad.