RE:RE:Trading stratagie by anonymous not good for shareholders
I think the selling we are seeing comes from an overhang of the previous warrant issues. After the warrants exercise the investors wants to sell to lock in their profit. To do this I believe they are putting in a sell stop for the size of their equity which is large relative to the daily volume and therefore effectively puts a ceiling on the stock until they are out. This appears to have been the case at $0.15 from Jan-May and then at $0.20 from Jun-Aug. They may have gotten a bit nervous with the recent market sell off and decided to get out a bit faster even at a lower price thus forcing the stock down a to the $0.17-$0.13 range. This is likely to continue to be the case until 1.) There is enough investor demand to overwhelm this activity or 2.) Until the company does not need to do these warrant financings anymore. Hopefully, as the story develops investor demand will increase resolving this overhang. To get investor demand going the price needs to be a little higher. Most institutional investors won't even begin to look at it until its market cap is sustainably above $20 million. Alternatively, a more aggressive PR effort might increase investor demand.