Once again, my order did not fill at 0.135 cents. I can almost guarantee these trades happened off the exchange (1.2m shares). I just wish there was a way we could prove it.
The cross trade is happening between two parties; there is no doubt about that. Most cross trades happen between two parties from the SAME broker. The question is why?
I have a theory... Let's say Company A and Company B to keep things simple.
Company A is putting downward pressure on the stock by short selling and taking a loss. By doing so, they are creating weak demand and weak hands.
Company B is buying up all the stock that Company A has pushed down.
In doing so, Company B is able to accumulate lots of shares without the price increasing, and in my quick math, I believe Company B now owns 10-15% of the float.
So what happens to Company A with all their losses? They probably close up shop and have no liability to debt collectors. Whatever the answer, it's irrelevant.
I know we don't like what is going on behind closed doors, but this is actually positive for us long-term holders. It essentially means there is someone bigger than us who wants to accumulate these shares in the price range of 0.13-0.16 cents.
I apologize to Dude51 because I called him out earlier in the year, saying that I believed he was wrong about the short selling pressure. I was arrogant and was quick to jump on him because I knew he was new to the field.