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Bullboard - Stock Discussion Forum L&L Energy, Inc. LLEN

"L & L Energy Inc is currently engaged in the business of coal mining, coal consolidation, and wholesaling in the People's Republic of China and its operations are conducted in the coal-rich Yunnan Province in Southwest China."

OTCPK:LLEN - Post Discussion

L&L Energy, Inc. > Without regular PRs, programs control
View:
Post by Cool_Scirocco on Oct 25, 2012 2:33pm

Without regular PRs, programs control

The pattern is all too familiar for many small and micro cap stocks.

Unless a company regularly (every two to three days) issues PRs to attract interest (good or bad,) any rally is capped by increased shorting, and  then algorithmic trading is used to drive the price lower and take out stop loss orders to create covering opportunities.

Since LLEN's last PR, probably 400K shares were shorted, and hte shorts needed to cover.

So now, with the lack of follow-up news or independent, mainstream articles about the company, the selling programs regains control and selectively sell into the bid until stop-losses are taken out.

Comment by Tjpsimone on Oct 25, 2012 3:39pm
Cool   Unfortunately that is exactly how this is working. There was definitely an ALGO running today tripping Stop Losses. it spiraled a bit fast. I actually picked up 5K at $2. What we need is : 1. Institutaional Buyers to decrease volitility. 2. Some analyst coverage from a Main Street Broker. 3. China Stocks in general to reverse. I do see a bottoming in China stocks, and money flows ...more  
Comment by raceagainstthestorm on Oct 25, 2012 9:55pm
We are floating boats in the same river, stay on your side Simone.
Comment by Cool_Scirocco on Nov 13, 2012 2:37pm
Pretty much the same old pattern on lack of news. Deep pockets short a bunch into any news, then use the lack of news to drive lower on small volumes to cover. Now, they're selectively shorting to create acquisition opportunities before the next PR.
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