No surprise in price/action here. MM's ran up pps
Post# of 56324
Posted On: 04/24/2014 3:08:32 PM
No surprise in price/action here. MM's ran up pps to maintain liquidity. This price action will continue April & May to absorb the now unrestricted shares entering the market April, May, July, August,September. No formerly restricted shares will come into the market in June so look for pps to react positively in June. This is simple math here. Just take the number of shares entering the market and multiply by pps averaged then add the short shares available and from there you can match volume with pps to get a rough estimate of where pps will be. Look for volume spikes on news (licensing, etc), but ultimately, until these shares are fully absorbed into the market the shareholders best option is to buy on dips.
The SS was designed to put in the range of 40 million into the hands of insiders. When shareholders buy approx 40 million X 2.5 (factored to account for shorting) or 100 million total then April - September 2013 shares will have been absorbed and we will see pps movement.
Also, licensing will impact the volume and may absorb the share faster which will cause more end of the month price action.
I know this is "rough logic" but prove me wrong here.
The SS was designed to put in the range of 40 million into the hands of insiders. When shareholders buy approx 40 million X 2.5 (factored to account for shorting) or 100 million total then April - September 2013 shares will have been absorbed and we will see pps movement.
Also, licensing will impact the volume and may absorb the share faster which will cause more end of the month price action.
I know this is "rough logic" but prove me wrong here.
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