kgreen:
I've had similar experiences. You should never place a market order on BB stocks as this only invites the MM's to use this order as an opportunity to raise or lower the bid / ask significantly above / below the last executed order.
It would be prudent to go after or sell small blocks at a limit price. If you are using National Discount Broker(NDB) they only charge you once for multiple orders of the same stock if executed during one day. Thus, you could place 10 orders at different prices or at the same price to see how many shares you can obtain at the least cost.
HVAR is now being seriously accumulated. If you watched the action this week, the spread has been as close as a half cent to as large as 3 to 4 cents. It appears to me that the individuals in the know are grabbing as much as they can if the stock goes down a few cents. When this occurred this week, usually within 20 minutes, volume has picked up. The stock has moved down on light volume and then goes up on stronger (larger) buys. It also found very good support at $.16 cents.
In my opinion, I see this level ($.16) as the lower price and $.25 cents as resistance. I would expect by the first week of June, that $.25 will be broken once the new store is operational. If you read the latest report by the company, their second store added significantly to sales and their associated operational costs decreased nicely as compared to the first store.
If you believe that the company execs know how to run this business model, their 3rd store is proportionally greater in size, their business systems will be able to handle the increase in sales with smaller operational costs. Thus, the 3rd store will bring them over the top and into the black starting in June. Though I am sure that this store has high initial start up costs, it will be reduced significantly as the year progresses.
Based upon this analysis, we are now, starting in June, stock owners of a profitable business. In my opinion, this stock has very little downside ($.16) and unlimited upside potential if the company execs execute their business plan properly.
Now, if their e-commerce site is a success, then we will all be very pleasantly surprised at their next quarterly report. The sales and profits of this new business (e-STORE) could have a significant impact on their bottom line before year-end.
Bob |
