Let me throw in my 2c:
I do not believe in a drop down to $3, as suggested a couple of posts ago, as the basis was realy established around $5. Just look at the tremendous volume traded in the $5+ zone. Even if all these trades were quick flips, somebody must have bought it at that price and is obviously still holding as the recent volume is not indicative of any sellout and could not change that $5 basis significantly. Hence IMO the majority is still holding and "supporting" the $5 basis and once something significant happens the $5+ zone will be pentrated in no time as there are apparently only few sellers below that.
Now my second comment: Also couple of posts ago there was a mention about the approx. 50K bids AND 50K asks. If that is indeed the case, it usually means that somebody is trying to control the stock by "boxing" the trading price within a relatively narrow range and when done properly (whatever that means) it can result in price slide or climb as per the "boxer" plan. For a stock like PYT there is very little what can be done about this boxing during this hiatus, when people who wanted it already have it and the stock is not attracting enough new investors. PYT is a story-stock and technical analysis principles, i.e., market psychology principles, are of little help - there is just not enough action for TA to be indicative of anything. (Generally speaking $1 mil daily volume is considered a minimum for meanigful TA - see TA threads on SI or review your TA library - very little TA on penny stocks).
Bottom line: I believe that the current slump is very much temporary pending a significant news release. VSE is a strange place where most of its reputation and experience is with junior companies. That is with companies of great ideas and scarce results or accomplishments. PYT is beyond that, there IS a product, there IS the demand and market for it and the ONLY thing which needs to be resolved is the logistics of production as marketing will not likely to be a problem (see Australia or offers of early implementation). It sure does take time to line up everything but PYT, so far, never mislead in their news releases and from my perspective they do built from the bottom up and do not skip steps, thus ultimately building a strong structure.
This device is NOT difficult to manufacture but, as far as we know, it is not being currently mass-produced. Who is going to place orders when the production line is not in place yet? I sure (as an orderee) would not be rushing in million dollar orders with 6 moths delivery preiod. It would not even be a good idea to release such a news as it would help to promote the stock in a short run but it would not do much good for the company as the promotion would, once again, eventually become old. As I see it, PYT cares about the company first as it knows it will ultimately reward the shareholders. It does not care about the shareholders first and hope that it will eventually benefit the company and its product. This is quite likely a rather unique situation for a VSE listed company.
If you are in for long run - good, this is your stock. If you are here to trade, you will likely get frustrated as the near term future is unpredictable (see the "boxer" scenario above versus a production news release).
Good luck to all
Peter
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