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Microcap & Penny Stocks : Sinclare (SNCG) / cyberlinx -- Ignore unavailable to you. Want to Upgrade?


To: Kip518 who wrote (2460)12/4/1997 6:51:00 PM
From: Dee Jay  Read Replies (2) | Respond to of 2696
 
perhaps the MMs or other vested interests read SI and similar locations and see what speculation there is...meaning that some folks start salivating when there's a 2 cent or 5 cent move. Or the speculation that something is going to happen imminently.

People expecting positive news are prime targets to be pigeons ready for plucking, it seems to me, because such an expectation may cause them to jump on the bandwagon that seems to be leaving the station, mixing metaphors of course. Then the demand thus generated causes the stock to rise thereby feeding more speculation, all on the basis of no news but expected news. Call it a self-fulfilling prophecy.

Now some are just hoping to be able to get out at a higher price but others may feel now is the time to average down in the expectation that this strategy will help narrow losses if the existing cost basis is way above current pricing - say over 50 cents. You triple your position at 15 cents and suddenly your break even point is cut in half. Then the chance to make a profit becomes more realistic, one would guess - IF there's a strong basis for the expected price rise.

But if you've just been suckered again then someone else has made a profit at your expense. So one must be very careful when there is a price rise without any substantive reason for it, and you also have a strong need for the price to be higher. FWIW.

Dee Jay