Some good questions were raised to me via PM, but since I use the free service here on SI, I will address them publicly.
<Do you know why MGMX took such a steep dive from around $60 down to .0055 now in less than a year? Have they done a massive dilution? How many shares are out? >
60$ to half a penny, wow that is a nasty loss, no way around it. This is in part due to MM shorting coupled with dilution. I can't be 100% sure, but IMO here is how the system works... A pink sheet stock will IPO at a high price and at that time it will have low liquidity. At this time MM's take short positions in these stocks knowing the price is going to fall as it did, also during this period the company, being as it is a start up, needs to sell shares to the open market to raise funds. Looking at the MGMX 1yr chart, the volume was pretty low, I would imagine the volume during this period can be attributed MM's establishing short positions, and also shares being dilluted into the market by the company. These are pains many pinkie have to go through, and anyone investing in these pink sheets should know it is no walk in the park down here. As bad as this sounds, I would like to draw your attention to two other stocks
1) SLJB (formerly LFWK) Take a look at a 1 and a half year chart. This thing fell, in quite a similar pattern from roughly 40 cents to .0025. That is a drop of 99.38%
This stock then initially ran to .05 cents and has recently been as high as .15 or so
2) FPPL Looking at the 1 and a half year chart. This also fell from about .75 to .003, a fall of 99.6% It then ran from .003 to .03.
IMO these run signal a turning point for the company and MM's covering shorts aka the short squeeze.
MGMX 60$ to .005 is a fall of 99.99% But the chart is showing a possible turn around in trend and the volume is picking up. The most available share structure I have seen is AS 800mil OS 400mil and Float 160mil. The Esperanza mine they own was evaluated to have 800,000 ounces of gold. wowowow. They also announced 6 new joint venture projects in August. They have strong connections with the COlumbian government which in that area of the world is important. Good luck to any and all. Sorry for the discertation but I hope you find this information useful.
Al |
