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Krysti

02/28/14 10:05 AM

#30503 RE: maronti1 #30495

I've never shorted any stock, maronti
There's no need to incur the expense or take the risk, of shorting thinly traded stock. So I certainly wouldn't short REVO.

In the case of REVO the obvious thing to do is to sell when Solomon issues a fluff PR, and then re-stock when the pps falls.

Remember, Solomon has to keep his associates happy. They are the ones that get convertible loan notes from REVO. So he lets them stock up, by converting those loan notes into shares. Then a PR is issued when its time to generate some selling action for them.

Those associates know when the pump is coming and their sales are the first to fuel the surge in volume. Then the bag holders, who bought too high in the previous pump, heave a sigh of relief and sell. Flippers join the fray, and that also boosts the trading volume.

The buyers are newbies and momentum players, who get sucked in by the action. Those who don't flip the stock, become the bag holders as the price drops. They have to wait on the next pump, before they can get out without too big a loss. Some wait. Some don't.

Meanwhile Solomon's associates can continue selling even as the pps falls, because they got their shares at a big discount to the market price. The 10-Q shows that many of them have an average base cost in the triple zeroes. So they're quite happy to sell at $0.011. Their selling helps keep the volume up. But the volume is now too thin for any effective shorting of the stock.

Just telling it like it is.