Replies to post #8457 on NEWBIES BOARD

[Joe C]

Welcome to the family. The PPS is not controlled by the company, the price is controlled by supply and demand, well mostly. There are market makers, like NITE among others that hold the price down and do not let it run for a couple of reasons. 1. They are accumulating shares and hold the price down while the gather the amount they have targeted and then let it rise then sell into it. It increases their profits. 2. They also will lower the price, sometimes with very small orders like 100 or 1000 shares, then buy at low prices to cover their short positions. It is very common to see. If you have level 2 you can watch it happen as the day goes on. Good luck.

[Garyst]

shaykespeeer69, one of the most common situations where a company would like to keeps its own pps down is if the company has plans in the short term to do a share buy back to reduce the # of outstanding shares. The lower the pps the greater benefit it is when the company does do a buyback. As for being common; I don't think all that many make an extra effort to purposely work to try and keep the pps down. Hope this helps.