Glad to hear you are inspired, I am. I know what y
Post# of 11899
Glad to hear you are inspired, I am. I know what you are getting at and I basically agree, however on another note I would like to use your post as a segway into a response to all the misguided musings out on other boards (wink wink ) just to give a clearer picture.
First off, its true the volume is low. I think low volume is any intraday volume under say 20M shares traded (2% of the float). I think medium volume is maybe 50M shares +/- 20M shares. I would say high volume would be approx 10% of the float trading on any given day, ~100M+. I think most RFMK followers have become entranced with the price and volume action over the course of this year and really have no real idea what this stock could do if there was an epic flood of new investors piling in because of some major positive development, or technical momentum apex. I think the volume is low primarily because for there is enemic buying pressure. In my opinion, the flippers, bashers and MM shorting manipulators using age old tactics in an illiquid low volume stock have over time (months) de-moralized the buyers and anyone looking to ever accumulate and build a position. They want flippers, they dont want longs. They know the market of investors do not really know yet about this stock, ok, maybe 400 to 1,000 investors (some holding some on the sidelines) are following the stock but that is miniscule, so they know with such a small following that with their millions they can short and cover, bash, rip and rob flip each and every day $$ out of anyone trying to trade this stock. It keeps longs in the red and it keeps swing traders away after losing with so many trades. This keeps the stock illiquid where their games work best. The flippers are in good company and this means MM shorter bashers can have their way with the stock knowing full well that on any given day they can swarm like piranhas and eat alive any fish that comes into their realm. The bid support is a joke because it is all their own puny bids for a couple thousand shares all the way down to .0001 and they each have quite a large effective pile of shares they can sandbag at any time on the ASK, not to mention all the shares are at their disposal to borrow and short then dump on the bid. So they know they can take the stock down and crush it to .0001 at the blink of an eye. They can do this because no real competition for the shares exists (yet). Even if you happen to have a small bid in there for say 1M shares at .002 and another bid of 5M at .001, it doesn't matter, they can and will just short 6M shares and dump them on your bids in a second and the stock is again trading at .0007. In other words, the floor is an illusion, there is no floor, the bottom can drop out of virtually any PK stock on a heartbeat, anytime the MMs want it to vanish. So the real cause of it not going up is the MMs pigeon holing the bid/ask to where they find the most volume to be so they can flip their daily lunch money and maximize their gains. They do not care a speck about where the stock trades. The PPS will only rise when they want it to and that is only when they are forced to by growing buyer demand, when the bid support is not their own and they see multiple buyers competing for ownership of the stock, they take it up and they take it up fast. So the lack of buying pressure is what is the problem for the stock right now and that is partly because RFMK is still little known AND also the MMs wish to keep it caged to control it when they know they can control the price in such a low buying pressure environment. If they let it rise on its own accord, at some level, the selling demand would become too much and the stock would fall chaotically and then they would be out of control. They want daily control so as to maximize known factors to know exactly where they wish to draw the chart because then they have 100% information and can maximize gains. More outside investor interest leads to more buying pressure which leads to MMs having less control (naturally) which makes them satisfied to earn daily gains on the spread instead of controlling the stock absolutely on low volume. They can make money in either situation but it must be either or, any middle ground does not enable them to maximize gains so they keep the lid on a stock until they are ready to let it run.
There is always selling pressure, there will on any given day be sellers who come out of the wood work to sell some shares at any price. Nothing is free, there are no free shares, no matter what the bashers tell you about insiders being handed free shares. Take Ironridge for example, those 143M shares for $643k had a cost basis of about $0.0045, not free. Other things and services are rendered to the company for shares, so nothing is free. However the sellers will still dump at any price, a certain portion of their stake, because as with any large position, if there is not enough daily volume to get out entirely on any given day, a seller must continue to shed shares over time hoping for higher prices but also leaning into the buyers to some degree so that other sellers do not eat up all the buyers that exist that day.
Its true the O/S has moved up substantially but many of those shares are restricted and still cannot be sold (time constraint) and also going back to the idea that no shares are free unless the company is giving away free shares to friends and insiders like candy just for the fun of it and I don't think RFMK is doing that. What the bashers always fail to mention with any dilution argument is what that dilution did for the company; what was the positive effect of those new shares. The market sure does seem to discount the PPS immediately when the T/A comes out with updates that grow the O/S but do any buyers think to recalculate book value and fair price so as to include the new positives for the balance sheet and company based on what advantage the company got for those shares? Usually not. Any micro cap PK company stock is usually in a situation where they must dilute to raise capital, constantly, in order to keep the lights on because they are not yet to break even and positive cash flow. RFMK is just starting to get there, RIGHT NOW! No liabilities, no debt, this should be about the last of the dilution, EVER! They now have funding (over 1 million), so this should surely drive revenues and therefore profitability. The market needs to price this into the stock and it has not according to my own calculations. In my personal estimation, it looks like RFMK book value is about half a cent and with earnings of about $1M annually and a regular P/E multiple, PPS of $0.01+ is fair, for now, later, it could get much higher depending on how many CannaCigs and other products they can sell per quarter. Right now longs need to realize though that without buying pressure and bid support that competes with the kind of capital the MMs and other groups have to control the action here, the stock is not going to be fairly or fully valued.
Also, one last mention, is that bashers may call us "front loaders" but its a very weak and generic description, made to somehow be derogatory, but it is not. All investors are technically "front loaders", even traders, we all buy and load up on shares BEFORE the positive catalyst or other "loaders" (buyers) come into the investment vehicle so as to make gains as those buyers push the price still higher. Its ridiculous to call long term investors or anyone looking for gains in the stock market a "front loader", what a joke. Of course that is what we are and we are proud to load up on shares and be here before the rabble finds out about how great an investment opportunity this company is! Hecklers from the sidelines need to grow up and either get a real job or grow some balls and become a "front loader" themselves instead of being "free loaders".
May the force be with you.
$RFMK!