A company like CMOZ could not manipulate the price of their stock by buying and selling stock, they simply do not have the cash (plain and simple)...
what I was saying about financing and stock manipulation has to do with overall market forces... by this I mean Market Makers, Pro Traders, Brokerages and Public Relations companies control the price of a stock once the first cycle of hysteria is finished... look at every internet stock that has started at pennies, the first run is into the mid $5.00 range... essentially the pros let the price run on speculation buying then they start to short, this drives the price back down... this is followed by several ups and downs, each time with less and less volume and volatility (this is the stage CMOZ seems to be in)... what happens next is a balance between speculators getting information from the company, day traders and Brokerages trying to figure out if there is really something more to the company than simple hysteria... what is particularly interesting is that as the company searches for money to complete acquisitions, many, many companies get contacted and the word spreads (this creates buying and speculation) and then as negotiations proceed, the stock is shorted and controlled by the group closest to the finacing so they can get the best price... in my opinion, that is what is happening with CMOZ... if they get financed then that will essentially be the signal to others that there is something inside the company, acquisitions can proceed, and thus the price will go up... how high the price will go will depend on the quality of the acquisitions and the vision of the company... CMOZ appears to be close on all fronts (acquisitions, financing and vision), this is certainly not the time to be sellling, on the contrary, I was on the buy today.... |
