<<If people think the company idea is valid, and the management strong, they probably used today to buy more....
That's not necessarily true. It is too easy to overwhelm them by controlling the float, and what's more, this can happen in either direction, and repeatedly too. SPDV was a recent example of that, and a pretty graphic one too. Not for the faint of heart.
This ain't the venerable, orderly, regulated NYSE.... more like a Swap Meet in the Alleys of Bagdhad.
Let's say you buy a boatload tomorrow, convinced it will go up. Now let's say Sleazy Joe Megabucks decides he's gonna scare those shares right out of you. He borrows 10% of the float, then proceeds to short all those shares, dumping them into the market in 1000 or 5000 share lots. Just walks it down 10%, 20%, 30%.... Maybe he gets his equally sleazy buddies to pay Yahooligans to spread scary rumors on the usual boards.
How long are you gonna hang on?
You (and many others) see that, practically have a heart attack, hit the panic button, start dumping your shares, while Sleazy Joe watches.
He accumulates your shares from you at the price HE chooses (cheap!), pays back his short shares, and heads for the next victim.
Don't you think people will be gun shy for a long, long time after being bent, folded, spindled, and mutilated that way? And even if they buy shares back again ever so slowly and cautiously, what's to stop Sleazy Joe Megabucks from returning to the scene of the crime for Round 2 ?
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