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Biotech / Medical : BSD Medical (Long Term Investment Oriented) -- Ignore unavailable to you. Want to Upgrade?


To: pleonastic who wrote (176)8/26/2014 2:57:09 PM
From: geoffrey Wren  Read Replies (1) | Respond to of 178
 
BSDM is not suffering because of computer driven trading. Those guys price themselves between real buyers and sellers and shave a little off for themselves. But computer driven trading exists for all stocks, and not all stocks tank. Some say computer driven trading is not a real loss to investors because the market is more liquid. I can recall when a stock like BSDM would trade something like 5/8 x 6/8. At least the spread is not so great now under the new systems. Since BSDM is traded a lot, the spread is less than a penny.

As to BSDM soaring, if it drops another 50%, it would have to soar 300% to get me back to even. If it soars from a low point it does not really soar, except for those who got in last minute, which makes this a trading stock.

BSDM might not have debt to take it into BK, because instead of debt it serially issues more stock to cover the overhead. But the lower the stock goes, the closer it gets to a death spiral, especially with shorts on the prowl. It is a fact that when a stock price gets to a certain point, shorts can kill a company by jumping in if it effectively prevents a company from issuing more shares. A company like BSDM goes insolvent if it cannot issue new shares.

Plain fact is BSDM is getting weaker and weaker. They need to make a deal where they get a good dollop of cash to keep operations going for a long term, even if they have to give away half the company to make the deal. If they did that they might cause a short squeeze that would cause the price to soar.