Market Makers are in this to make money. They don't care what the stock price goes to just as long as it's not a surprise to them! LOL... That's always a nice thought! :)
OTC stocks have more confidence than one would assume, and it's mainly due to the Phase-In schedule the SEC implemented last year. It's a protection agent that's actually working, and when something works, it works. No matter what type of label you put on it.
Until you call the company, a fully reporting company, find out what's going on and what they're about, you haven't go a clue as to what's going on IMO. I've seen companies go from the very bottom... south of .01 and never say a word about that all important contract that's about to come to fruition, or the merger that's about to take place. You know why? Because some companies actually want to move on their own merit.
I do, however agree with your analysis of NASDAQ stocks going down from record levels to record lows. I believe this is in part due to the fact that the smart investor has discovered some very important things about investing.
1. Who's staying in companies for more than 5 years anymore? There's always a better company coming along with better technology, better earnings or at least better "Whispers" of earnings and more importantly, better potential.
2. They've discovered how to roll money from one profit making stock to the next. After all, making money is what it's all about, right?
3. We've started noticing how the MM's actually accomplish their work. Take note and you'll see how they attempt to "Shake" people out of their stock, or make it "appear" the stock is about to crash. Sometimes it does, sometimes it doesn't.
The way I see it, if you put money into a company at $1.00, and it's a good, legitimate company, you'll never lose your money unless you sell your stock below what you paid. We've all done it, but no matter if it took 5 years to make a profit, you still wouldn't lose the money unless you sold.
Geez, I get long winded sometimes, but oh well. I like to type stuff. I can get 10 words per minute done if my daughter isn't trying to chew on my ankle!
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