The better part of me wonders if it is a "HYPE" move, so that market makers and insiders can distribute shares again on a spike.
Though you really have to think about this one, I think the answer is going to come up "no". Did they, in fact, create a spike? Well, from a $2 Low on Thursday to a $3 high on Friday is a 50% move. And Friday's volume was about 4x the recent average. So it moved the stock. But that was a one-day flash in the pan. It didn't hold up. Compared to the big moves in January and May, this one looks pathetic on the chart. As a 'hype' spike, I'd classify this one as a failure.
So let's go back to the announcement itself. It announced intention, not achievement. There is NO master message board that we can go to now. There may NEVER be that type of a master stock message board because both copyright and technological issues may be intractable. If Cosmoz were plugging software that way, we'd call it vaporware. It is definitely a "HYPE" press release.
But lest we condemn Cosmoz too quickly, what does INTC do when it intends to put out a Pentium 4 chip? How about MSFT's announcements about future Windows OSs? And what about the drug company announcements that they see new hope in their R&D on cancer prevention?
They're all hype. It's a corporate PR way of life. But why do we accept it from INTC and MSFT? Because we know that they'll deliver (even though there may be some delays along the way). Now how about Cosmoz? It's different. We don't know whether they can deliver. In fact, real scepticism is prudent here.
Bottom line: Was this announcement intended "so that market makers and insiders can distribute shares again on a spike"? I think almost certainly not. What good does it do an insider to sell his shares near $3 on a shady announcement when the company is almost certain to move to $3 and beyond through competent execution of its business plan. (I wouldn't sell at $3 if I expect $5 next year.) And for market makers? They're not even CMOZ people. They're in to making money for themselves (through manipulation, if you're inclined to believe so). They owe no loyalty to CMOZ and CMOZ owes no loyalty to them.
I do think the press release was intended to put some life into the stock, to resurrect it from its 2-month-long doldrums, to give it new inspiration. (And numerous companies issue press releases for exactly the same purpose.) But is it part of a sinister machination to enrich insiders and market makers? No, my intuition here says 'innocent until proven guilty'. |
