johnale wrote: 84 mil shares short as of feb 15 avg .42 cents. Not enough volume last 2 weeks for them to have covered
they set up a fake wall of 1-2mil shares, forces sellers to sell below the wall into the bid, where they sit trying to cover their position.
they Can short at .30/.29 even because it just averages down their short position from .42, so they are still in the money. Hit some stop losses and shake some weak hands.
The volume really died down because people
stopped selling, but also get nervous to buy when the price keeps dipping/flat day after day.
with momentum turning this week, with traders seeing a green move to the weed stocks, you can bet you'll get traders jumping in, shorts will cover (especially at a profit under .42) and we could drive up quick.
If we pass .35 I think we go back up to 50+.
Need buyers to hit the ask repeatedly and make these fkrs nervous.
It's like they trade these plays with not a care in the world for their actual valuation.
wild card is MMs position, well see next week. I'm curious to see if they take a long term position. Given their majority holding position, I don't know if they "really" want to hold this down if it has a chance to trade 70+. Considering the volume, they should have been able to sell whatever they wanted ++ so should be telling.
AOGEE wrote: Lily
I have heard of this occurring more in the penny stocks arena. It does happen in the big company arena also, as in the VW and Porche example a number of years ago.
I have also seen it referred to as a "creeping takeover". It is an orchestrated process to purchase as many shares of a company on the open market at a price that is lower than they could have purchased in a planned offering. They are also doing it under a trading house.
It is possible but very risky for the aquiring company. They have to have a certain number or % of shares before they have to make it public and then at that time they have to eventually annouce they are looking to want a spot on the BOD or takeover the company in essence a "hostile takeover". In these cases I believe its needs a 90% yeah vote which is very difficul to get. In the end if it doesnt go through the aquiring company is stuck holding a huge amount of shares of a company they can't do anything with.
You are correct that something is holding this below the .30 or 31 cent market and not allowing it to run.
I bet people on here that have a longer history can come up with some ideas.
Cheers.