EXCELLENT question ctown: I've been wondering about that myself ... as well as how might these miscreant MMs shaft the flippers (who are now assembled on the sidelines), as well as all of us who have been waiting, inside the trade, for the last several months.
The vast majority of traders who have been here for more than a month or so have relentlessly averaged down. Many of them are now 'somewhat comfortable' with that 'averaged-in' price. And many of us have set our sell orders based upon the ROI we'd like to see, in relation to that 'averaged down' price. In doing so, we may become the unwitting dupes of the calculating MMs. And this is why:
When GCS files its 8K (most likely before or after any particular trading day's session), it will contain at least 2 years of audited financials, as well as the current OS. Thus, a very quick (and rough) calculation will be able to be made regarding what its PPS SHOULD trade at.
What happens (as I firmly expect to take place) if it shows the following:
that its revenues are approximately $5M, and it now also has $28M of Tax Deferred Asset's on its balance sheets (the NOLs), and the OS is 1 billion shares? The PPS would then be calculated as: $5M + $28M = $33M / 1B shares = $0.033. Should this take place (or anything similar to it) then the opening would immediately trigger ALL of the sell orders -- many of which are no doubt placed in the $0.00__ to $$0.01 range. This will be true due to the fact that we've all gotten so used to being at .0001 that anything beyond $0.005 or .008, or $0.01 now seems to be almost unreasonably good fortune.
Thus, the opening PPS would trigger all of those lowly sell orders, and give the MM's relatively cheap shares to sell as the PPS surged above the price calculated by the news of the OS and GCS's revenues. This opening surprise would also catch ALL flippers absolutely flat-footed.
Therefore, I don't look for a gentle and steady rise in the pps. Instead, I expect the MMs to keep it cellar-boxed (or very near thereto) until the 8K is dropped, and then dramatically and very violently increase the opening PPS to reflect the stock's actual value ... running it beyond the reach of many here to get back in.
Just my opinion, that's all.
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