Post by
lifegoeson on Jun 04, 2021 11:48am
Was this a liquidity pullback...?
I have watched the trading patterns of a lot of companies with tight floats and low number of shares, one common feature is that they are volatile on both the upside and downside. Here is my theory on why the price pulled back with very low trading volume. TOC has about 28 M shares, so when the price climbed and climbed to $1.50 there were fewer buyers since I believe the price was clearly overvalued given the progress made over the last year, and given the last set of assays just released. How does it become more attractive for people to buy...? Day after day, dime by dime, the price pulled back with very low volume. Everyone was watching and still not willing to buy, but yesterday when the price pushed near the $1 critical price point, bids began to come back in. Today a few more buyers. Hopefully people who bought higher will begin to average down because the price point is much more attractive, i.e. buy more shares at cheaper prices. There hasn't been a press release regarding warrant exercise or more results. Not sure if my theory is correct, but I do like the sound of it. One last statement, thinly traded companies with low number of shares can quickly rebound.