Searchlight Innovations Inc T.SLX

RE: RE: RE: PP holding period concludes

[MudCreeker]

Frequently when a PP becomes free trading, selling pressure hits the share price.  This seems to be especially true of flow through placements, and placements that are in "weak hands".  This was not flow through, and as others have pointed out, was likely placed into relatively strong hands, so even though it was a big pp, I'm not expecting a lot of impact to the share price.

OTOH, I've watched prices spike just as shares became free trading as well.  In that case, it was clearly what I would call manipulation.  The company kept quiet about developments until just before the shares became free, then hit the airwaves with repeated glowing releases (even some later-to-be-proved-false innuendo).  Bottom line, their buddies with all the cheap pp shares got to sell them into a high volume spike in share price.  Followed a couple of weeks later by corrections to the innuendo that hit the share price hard.

With this pp done at what I consider to be a significant discount to a fair value (I said so at the time), and with the company being so very quiet since the pp, it looks possible that something similar just might be going on here.  I sure hope it isn't, because that's not the sort of management I want to be involved with.

I know this management team is highly touted, but I tend to judge for myself, based on their actions.  So far I haven't seen enough to be really comfortable with them just yet.  Perhaps the next few weeks might give me another data point.