The retail investor market is dead for nnlx for the following reasons:
1. This is a pink sheet stock.
2. The stock is thinly traded.
3. The trend has been decline regardless of the good news.
4. The premium (difference between bid and ask) is huge.
5. It is not possible to purchase a big lot of shares at the ask without driving the premium even higher.
6. It takes extraordinarily long to get shares filled at the bid.
A thought occured to me just now after laying out the above list -- I`m not so sure that growing the sophisticated investor base (SIB) mentioned in post 194 (http://investorshangout.com/post/view?id=1930922) would necessarily drive up or stabilize the share price. The SIB may be willing to pay the premium, but unless they have very deep pockets, they will not be able to stand up to the manipulators. I am, however, confident that the SIB would be steadfast in holding onto their shares regardless of the decline in share price as long as the company continued to progress. I think the steady erosion in share price over the years on thinly traded shares is evidence of this.
A large part of the basher rhetoric has been that there is no interest in the stock even in spite of the recent spate of good news as evidenced by the absence of buying pressure. They question why the existing longs don't buy more while purposefully ignoring factors such as limited funds and comfort levels of exposure to the different types of investments that make up one`s portfolio. I suspect most of us fall into one or both of these camps. My list above addresses the obvious `what about new investors?` salvo that follows like clockwork.
But what about those, existing and new SIB, that do have funds to invest? Surely there must be some. Some here have claimed that they aren't buying any more shares until the Company becomes more transparent, in part or whole, about their activities. That's fine, but there must be others that are willing to invest based on their evaluation of the technology, the IP and the potential impact to the IVD market, especially after what's been made known of the N-Assay.
It's taken a while to get around to writing down the thought that occurred to me earlier, but here it is. We know that PIPES have been used in the past to fund general operations, make capital improvements, purchase equipment, etc., when there wasn't any revenue to speak of. The general feeling seems to be that the Company is not releasing financials because it's not yet strong enough yet to break the manipulators. Could it be that those currently part of and those new to the SIB are participating in PIPES presumably at some lower level than in the past to supplement revenues?
I can hear the bashers going bonkers with ecstasy over such a revelation if it were the case, but they would be wrong as usual. Think about it. They killed the demand in the retail market. They destroyed the share price. They made it extraordinarily difficult and expensive for new SIB to get their shares on the open market. They basically drove the SIB into the only option they have to get a lot of shares at or near the current share price without having to worry about causing and paying for volatility due to their large purchases; that option being to purchase directly from the Company. Sure it hurts the Company because the shares would be sold WAY undervalued, but not nearly as much as it would have hurt if the Company had to sell shares on the open market.
If PIPES did occur recently or are happening, it would help to explain the absence of buying interest on the open market. And it might also help explain the perceived snubbing by some investors currently holding stock and suffering mental anguish because all they focus on is the manipulated share price and not on what the Company has achieved and the potential to achieve so much more soon. Instead of blaming the manipulators, they blame the Company for not doing more to protect the share price. The Company has put out FANTASTIC news recently without anything but a negative reaction in the share price. Take a moment to consider this fact and if you still think being more transparent at this point will help the share price...well, sad day for you.
The Company is focused on the long game as they currently don't have the resources to deal with the manipulators. I am more confident than I have ever been that the Company will be wildly successful and that the share price will follow. Financials won't matterr so much if the Company gives out dividends. I'm just saying.
1. This is a pink sheet stock.
2. The stock is thinly traded.
3. The trend has been decline regardless of the good news.
4. The premium (difference between bid and ask) is huge.
5. It is not possible to purchase a big lot of shares at the ask without driving the premium even higher.
6. It takes extraordinarily long to get shares filled at the bid.
A thought occured to me just now after laying out the above list -- I`m not so sure that growing the sophisticated investor base (SIB) mentioned in post 194 (http://investorshangout.com/post/view?id=1930922) would necessarily drive up or stabilize the share price. The SIB may be willing to pay the premium, but unless they have very deep pockets, they will not be able to stand up to the manipulators. I am, however, confident that the SIB would be steadfast in holding onto their shares regardless of the decline in share price as long as the company continued to progress. I think the steady erosion in share price over the years on thinly traded shares is evidence of this.
A large part of the basher rhetoric has been that there is no interest in the stock even in spite of the recent spate of good news as evidenced by the absence of buying pressure. They question why the existing longs don't buy more while purposefully ignoring factors such as limited funds and comfort levels of exposure to the different types of investments that make up one`s portfolio. I suspect most of us fall into one or both of these camps. My list above addresses the obvious `what about new investors?` salvo that follows like clockwork.
But what about those, existing and new SIB, that do have funds to invest? Surely there must be some. Some here have claimed that they aren't buying any more shares until the Company becomes more transparent, in part or whole, about their activities. That's fine, but there must be others that are willing to invest based on their evaluation of the technology, the IP and the potential impact to the IVD market, especially after what's been made known of the N-Assay.
It's taken a while to get around to writing down the thought that occurred to me earlier, but here it is. We know that PIPES have been used in the past to fund general operations, make capital improvements, purchase equipment, etc., when there wasn't any revenue to speak of. The general feeling seems to be that the Company is not releasing financials because it's not yet strong enough yet to break the manipulators. Could it be that those currently part of and those new to the SIB are participating in PIPES presumably at some lower level than in the past to supplement revenues?
I can hear the bashers going bonkers with ecstasy over such a revelation if it were the case, but they would be wrong as usual. Think about it. They killed the demand in the retail market. They destroyed the share price. They made it extraordinarily difficult and expensive for new SIB to get their shares on the open market. They basically drove the SIB into the only option they have to get a lot of shares at or near the current share price without having to worry about causing and paying for volatility due to their large purchases; that option being to purchase directly from the Company. Sure it hurts the Company because the shares would be sold WAY undervalued, but not nearly as much as it would have hurt if the Company had to sell shares on the open market.
If PIPES did occur recently or are happening, it would help to explain the absence of buying interest on the open market. And it might also help explain the perceived snubbing by some investors currently holding stock and suffering mental anguish because all they focus on is the manipulated share price and not on what the Company has achieved and the potential to achieve so much more soon. Instead of blaming the manipulators, they blame the Company for not doing more to protect the share price. The Company has put out FANTASTIC news recently without anything but a negative reaction in the share price. Take a moment to consider this fact and if you still think being more transparent at this point will help the share price...well, sad day for you.
The Company is focused on the long game as they currently don't have the resources to deal with the manipulators. I am more confident than I have ever been that the Company will be wildly successful and that the share price will follow. Financials won't matterr so much if the Company gives out dividends. I'm just saying.
