I don't know. I'd maybe like to fancy that the buying surge is a result of the certificate calls but it seems much to acute for that. Besides, the cert. call will be spread out in time over the next month or so. I don't know who the two new posters are, Gambler and Proletariet. I'd recommend that you look at their profiles to see what they've been posting about to get a fix on their nature and interests, which is really all the info. we have to go on. I've witnessed the effects of online newsletters on BB stocks but the effects were not cataclysmic like this. I'm willing to guess though that this was the work of some stock positioning club or online newsletter or some such thing. Obviously BB stocks are very manipulable if you have any real money and are used and abused accordingly.
I just typed Penny Stock in as a URL and came up with a site. Don't know if this site is related to whatever Gambler and Proletariat referred to. It appears to be basically an online stock advice newsletter. They make recommendations on BB stocks and provide those rec's free to the public. They also make rec's on listed stocks with prices under $5 twice a month, on the 5th and 20th for paid subscribers ($89 a year). They claim that they are not paid by the co's they recommend and that they keep their positions for anywhere from six weeks to eighteen months or longer. If LONE were their next target for touting in their free BB stock reports, the report itself is not up on their site yet. It makes sense to me that they might inform their paying subscribers by e-mail in advance about their upcoming recommendation before sharing it with the general public, as LONE e-mails their shareholders the night before about a news release on its way the next day. I expect the price will decline as the interest whatever Penny Stock has generated wanes, if in fact that is what's causing the price surge. As far as I can tell, the way to make any money following these newsletters is to buy at the beginning of the price rise, if you are privy to the info. and then sell quickly, in the surge generated by the newsletters lemming-like followers who aren't privy and always a step behind. Now that I think about it, the source of the trading volume the two previous days and lack of price movement fit this scenario. The newsletters insiders must have been positioning themselves by taking large positions in the stock but not wanting move it until their positioning was done so they used limit orders. That accounts for the vol. and lack of price movement. Then after the market closed yesterday and before it opened today they sent out e-mails to non-paying subscribers who followed them into the stock like sheep but did so "at the market", not being so sophisticated or disciplined, and drove the price up. Within minutes of the opening when the price was peaking I bet the insiders were unloading their position, even as their lemmings were still buying. I guess these traders will move on to another company quickly and the price will drop back to about where it was before they came. Hope I'm wrong and would like to believe this event is correlated with optimism generated by LONE's recent statement regarding the reverse mergers. Maybe First Madison had a part in this market dislocation. Who knows? |
