RE:What tremendous defense at .80tamaracktop wrote: The stock has traded below eighty cents in every one of the last 8 sessions and each time has rallied to close at .80 or better.
The reason is simple.
There's virtually no incentive for warrant holders to exercise warrants and sell stock at prices below eighty cents.
The return from doing so diminishes rapidly at prices near the exercise price of the warrants, and the warrants are now the company's only source of outside financing.
The insiders won't keep buying financings.
They aren't up a penny from their last "participation".
This is reminiscent of the Battle of Rorke's drift, when a contingent of 150 British soldiers tried to defend a small British outpost against an attack by 4000 in 1879.
The event is depicted in the movie Zulu.
In the end, the British lost.
They were just too outnumbered.
I'd put the intraday upside at 85 cents from here.
It's not likely to trade higher than that before warrant holders exercise and sell the stock to pocket a quick ten cents.
Why anyone would buy here with such limited upside is beyond me, unless it's the company itself trying to get people to flip the warrants and put money in it's coffers.