GREY:CHALF - Post by User
Post by
TheCanadianDudeon Mar 10, 2022 11:50pm
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Post# 34505448
Low liquidity poses serious problems for investors.
Low liquidity poses serious problems for investors. Liquidity
Current Ratio 0.53
Quick Ratio 0.29
Cash Ratio 0.08
Above numbers from:
https://www.wsj.com/market-data/quotes/CHALF/financials
Chalice doesn't have much liquidity: First, you won't be able to sell the stock. If there is a low level of liquidity, it may be hard to find a buyer for a particular stock, and you may be required to lower your price until it is considered attractive to another buyer.
Second, low liquidity levels provide opportunities for some traders to manipulate stock prices just like the attempts of the lone pumper Blazer, which is done in many different ways—the easiest is to buy large amounts of stock, hype it up, and then sell it after other investors find it attractive. This technique is also known as pump and dump.