Hi Elmstreet - re LFWK - profit taking, panic and a huge short position. When you have a incredible run up, you typically expect a retrace. Profit taking and panic feeds on itself. Those sitting with huge gains may panic and think their gains will disappear. Add in an unknown equation where the company claims that there is no legal public float and you have the potential for tremendous swings and manipulation.
The retrace from bottom to top is about 1/2 of the gain, again, many TA theories to support this as typical.
More shorts? Mostly longs flipping or getting scared out? You could argue this back and forth for hours.
The negatives I see are interim financials filed with pinksheets.com. The numbers are good but they were prepared in a less than professionally perfect manner to be kind. This has likely created some concerns about the company's credibility. If you look at the numbers, they add up to something that supports a share price many times the current share price.
I was away today and unfortunately missed the chance to buy. I am looking tomorrow to do so, but many message board posters are claiming the same thing. Maybe that will provide a base for the next move up.
I see a downside risk to the .015 area which is the 20 day moving average followed by many as midrange in the Bollinger Bands chart. I don't think it happens but I'm prepared for that to be kind of a worst case.
Here's my positive bullish viewpoint. This is going much, much higher because of the following:
1) PR that they are contemplating a .01 annual regular CASH dividend. (about 40% of current share price). See yesterday's PR.
2) Company claims that it or affiliates or known individuals control the entire float. This makes the likelihood of huge moves up and down higher, with the trend upward.
3) Company is acquiring/merging with entities that will give it an asset and revenue base and possibly sufficient earnings to support a share price of .25-.75 a share. The IHub board is very active and many have put together inteesting projections.
Here are some key posts
investorshub.com
investorshub.com
investorshub.com
4)IMO 2 other companies that have traded like this are HISC and IDWD, both of which were subject to extensive debate about the size of shorting by MM's or naked shorting. Both companies tried different tactics with respect to the capital structure to shore up a strong shareholder base. Take a look at the chart of both and you will find some interesting comparisons. HISC - many followed it here - had a hard time overcoming key psychological points .01, .05, etc. Take a look at the first run to .05. Around May 20, 2005, it hit .05 and then retraced back to .02 in a similar panic. Then take a look at where it went after that, almost straight up to .145 by mid-July.
Personally, I think that LFWK has more going for it than either of these companies. If it offers the CASH DIVIDEND, that should be enough to move it to significantly higher numbers. But remember it is a pink penny and has extreme inherent risks.
5) CEO claims that his friends and family have invested in the .30's and .40's area and that without naked shorting and MM shorting, that's where the share price would be.
6) Going forward - the company claims to be putting together an entity which will be a powerhouse in r/e rehab, an internet-TV type program, furniture and furnishing for its lofts rehab business, and contracting-construction business with a history of significant and profitable revenues. |
