Expectations VS Reality Good post Good Spec.
Yes I agree there are many unseen variables in the market. A huge one being the type of shareholders a company has. That being next to the type of people running a company. Some companies have outright charletans running things and they bilk shareholders of their cash and then let their companies fold. Outright thieves who need to be jailed for their scams.
However, when the management are legitimate, then it's a matter of who the shareholders are. If a company has the goods or a strong potential of having the goods then it stands to reason the share price should do well. It should move up and stabilize. This is where the expectations come into play. We expect the price to act in a certain way under normal conditions right?
Thing is, no two company's share price will act the exact same way. Many will be similar in some ways. However, because you have different shareholders, different timing, different situations and the fact the reasons they decide to buy or sell will be different it's difficult to know what will happen each time. In our case, there was no way to know Pintree would start unloading a HUGE position.
We had expectations the news releases would generate interest in the retail market but there was't much response. So, couple that with a large position holder selling off and no market interest and voila....share price has no where to go but down. It's a good thing they haven't hit a large sell market order. Unless there is a huge iceberg sitting at .04 the share price would be driven to nothing. So far it seems obvious they aren't interested in selling into the 1 cent range. That definitely would be insanity on their part.