NITE and his baby brother ETMM are notorious for their iron grip on pink sheets stocks, keeping them "cellar-boxed" at whatever levels they feel like whenever they wish. Why? Because they can afford to play games when they have just enough shares in inventory to keep a lid on the price while there is basically no sustained bids or buying out there in the market. Its simple, if there were a multitude of bids and buyers for the stock they would make a lot of money flipping it between the bid and ask all the way up, and they would take it up higher and higher, but alas, look at the bid, there is no bid besides those two MMs with a few dollars at low bids just to keep up making a market. Instead of just taking their grimy hands off the stock when the buyers dissapear and letting the stock sit with practically no volume and the last price range, they walk the pps down on low volume day after day for weeks in order to try to instigate buying as the pps falls. If a low level of buying comes in but it is limited, they simply short those bids and keep walking it down lower and lower, covering at a lower price on the same day making money that way. Just be patient, when and if large sustained buying ever comes into the stock, the pps will spike very quickly back through the MM levels, there will be bid support at multiple levels and there will be a greater number of MMs actively playing the stock because it will be more liquid than it is now. The T4T to some degree diminishes the buying volume as well because many pink sheets traders have realized over time that even at a low price, without volume typically the stock price keeps taking it on the chin, so it keeps buyers away, even if they like the company. This is why it is so imperative for the CEO to get this situation corrected asap. Its lucky for management and shareholders that they already executed dilution to raise capital for operations because at these levels and with such enemic volume, they would have to dilute massively in order to raise practically any money, its a downward spiral and especially on the pink sheets market with a T4T restriction, the scenario is even worse. The CEO has experience with stock promotion so he should know this very simple fact. It was somewhat reassuring that in the shareholder update the CEO addressed this bad situation as one of the primary focal points of the business plan, but seriously, the stock is a sinking ship if its not rescued soon and dilution continues, even if the company is doing rather well fundamentally. The disclosure and financial filings (10K) and paper work to get on the OTCBB can not come any sooner.
On a more positive note, the daily stock trading is so thin, it would move rather quickly on even a small amount of accumulation. Looking at Level II shows that between ETMM and NITE, they are only using a couple million shares on a low ask to keep a lid on the price while we all wait for buying volume. This represents only a few thousand dollars worth of stock trading, and the levels other MMs are sitting at with asks is up at the 200 day moving avg, of .003, .0065 and .0093 so I imagine if we started seeing sustained buying and daily volume of over say 30M shares, it would begin to move through those levels rather quickly and abruptly. There is just simply zero buying these days and it primarily has to do with the desolate pink sheets exchange and the trading restriction keeping buyers away from investing in the stock. The recent dilution does not help either, if there is further dilution the situation will worsen, however management has the ability to do several things to help alleviate sentiment by canceling the extra 1B A/S that is sitting out there in a move that would confirm confidence about the future and show that management is confident they no longer have to use short term funding to stay afloat. Dilution is absolutely fine in order to grow the business and expand to get the business rolling into a stable company situation, but eventually if done constantly and too deep, it erodes investor sentiment and potential investors stay away, when they stay away there is no buying, when there is no buying, there is dwindling volume, and the MMs have a difficult time making money so they tank the stock on low volume in an attempt to drum up interest and volume so they can make money once again flipping the stock. Its either a downward spiral or an upward spiral, which one depends on managements decisions and their ability to do what is necessary to get the stock trading on a better exchange where a greater number of buyers could come into the stock. I guess we will see what happens. As for the fundamental story of the product, it looks like the CannaCig is getting GREAT exposure, the Cup was an excellent event and online sales could really pick up but all of that takes time to progress and make RFMK a stable valuable company, in the meantime the stock is sick and it will only get better if certain things are done by management to change the downward spiral.
$RFMK!
