Posted On: 09/20/2016 7:58:24 AM
Post# of 75364
Re: adirondackhi #25564
I think we can identify the difference between a flare up in pps and a rise in pps supported by sustained sales growth.
Last years' shot up to $0.32 was a flare up and that's why it fell so fast back down. In the future, when sales start to roll in and the pps rises, this time the pps will be sustained by sales and should reflect this growth and stay up instead of falling back down.
Of course all the oddities of penny stocks adds mystery to all financial discussions but these are some general financial principles. Day traders love the unsupported flare ups and us investors prefer the sustained growth from sales that will stick around and stabilize the pps as it rises.
Just my two cents...
Last years' shot up to $0.32 was a flare up and that's why it fell so fast back down. In the future, when sales start to roll in and the pps rises, this time the pps will be sustained by sales and should reflect this growth and stay up instead of falling back down.
Of course all the oddities of penny stocks adds mystery to all financial discussions but these are some general financial principles. Day traders love the unsupported flare ups and us investors prefer the sustained growth from sales that will stick around and stabilize the pps as it rises.
Just my two cents...
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