Another iHub post about WOLV said "It will move to .02 and there will be strong volume at that range, then will hold steady in the .03 range until the next event."
The problem is, there is no incentive for the s/p to move anywhere near .02 or .03. In fact, it continues to slide slowly downwards, and at each each level WOLV longs continue to insist it has hit a new bottom.
The bar keeps dropping. Not long ago that bar was 5 cents. Since the release of the assay results and the excuses about why the good holes weren't drilled and why the drilling ended early, the bar was dropped to 1 cent. The next bar will likely be 1/2 cent, and we'll likely see that hit next week.
There is simply nothing to stop the fall at this time. And each time the s/p drops, the likelihood of financing drops with it. Even if financing is somehow attained, the penalty that shareholders will pay for that financing will be a steep one.
We've all been involved with one or more stocks like this. The end game never changes. The s/p drops and drops and drops, and management is finally forced into a situation where either a ton of shares is added to the float, or a significant reverse split is needed to get the s/p up to a level where financing is attractive. And when either of those things happens, current shareholders lose any chance of participating in a turnaround because their shares are now so much less a percentage of the pot than they were before.
Again, we've all seen this before. The odds against a turnaround are astronomical, but even if those odds are beaten and a turnaround happens, the only people who win are insiders, financiers, and anybody who comes to the table very late in the game. People who owned shares before the drop are always left out of participating in any significant gains because their holdings are so diluted. |
