one thing i dont think most on here understand or

one thing i dont think most on here understand or appreciate is the role the toxic debt/lenders plays in the astronomical runs. there are very, very few of these sub penny stocks that have those ridiculous runs that arent horribly manipulated. the toxic debt lets them do that. they convert aggressively with the original shares and start buying shares when it bottoms. they are promoting it all over the boards, direct mailers, etc. then they let it "run" by piling in at the bottom and on the way up. when the retailers and day traders start piling on the momentum, they sell into the run and when the momentum wanes, they start shorting the hell out of it knowing they can drive the price back down and close the short position with new shares they will convert. this works two or three times on these stocks before everyone knows the game. then anytime a run "starts" - the traders that have been following it closely take the small wins before they get left holding the bag again. look at the charts for any of these companies that had ridiculous runs - you almost always see two or three dramatic spikes and the rest are short lived spikes with lower lows and highs.

in that vein - where will be the heavy pumping and momentum created for HJOEs? there will be buying and the price will go up. but there will not be the ridiculous buying/shares transferred unless it is current long term holders selling as there will be no dilution to pump up the volume and create the illusion of momentum. further, to several posters points - who will have the discipline to really see this into the 20s or 30s with all the dramatic trading spikes in between...? if you watch this go to a dime and then drop hard to a penny or two - are you going to watch it go back to 7 or 8 cents and when the momentum starts waning wait it out? or get the itchy trigger finger and not get caught again knowing you can buy back shares lower for "the next run"...?

i watched $400-500K come and go on the run to $0.0074. as a long term investor - i was being disciplined in my approach even though i was 90% sure it would come back down just as fast. i wasnt concerned with that. what i was hoping for was a strong base in the high 20s to high 30s. it did hold for awhile. there were several spikes afterwards but none as dramatic. how many of those on here that waited out the 74 spike held out on the next, lower ones...? more importantly, how many new buyers will be buying millions of shares at 30, 40, 50,instead of 25, 50, 100K? where will the volume come from? especially if current long termers are looking to monetize 25, 30, 50% of their holdings to diversify/protect profits...?

this is neither a good or bad thing. it is normal and (somewhat) rationale market mechanics of trading as risk is (somewhat) orderly dispersed throughout the markets. the highest risk takers get the largest rewards and the lower risk takers get less. they also buy a lot fewer shares as the price goes up. that is the key difference when a stock is being manipulated with "artificial" or "free trading" shares. when complicit MMs know they have a somewhat neverending source of shares/dilution coming on line to quell runs, they can take much larger, more aggressive short positions to manipulate the price up or down. when there is no convertible debt to use as a stop gap - they dont play the game and the incredible momentum runs usually dont develop.

i would expect a quick bump to75-0.01 as it would be "former recent highs" with a strong pull back and then a slower, orderly, lower volume march to the $0.03-0.05 range. the problem with the big run is a current, large shareholder trying to monetize 25-50% of their holdings and COMPETING for buyers above a penny when they hold 8 and 9 figure holdings and looking for buyers against other 7-8 figure holders also looking for buyers. when that jockeying starts occurring, runs become much shorter and more volatile until a "new order" of trading commences (which is new long term holders eventually absorbing the systematic unloading from original, high risk long term holders). longer term (6 months-2 years) the market will establish what an acceptable premium on the multiple will be and the stock will start trading more rationally as the company continues to produce results and grow.

right now - who is buying...? i know a few shareholders that keep picking up a million shares here and there but they are already 8 figure holders. lot of posters on here that are very enthusiastic about the long term but doesnt seem to be a lot of buyers. if you buy 1MM shares at $0.0016 on the ASK and it goes to $0.03/share - you just turned $1600 into $30K. how many will risk watching $28.4K in profits disappear on the chance to turn it into an additional $170K at $0.20...? if you are so sure it will get to pennies - why arent you buying aggressively now? even with prudent risk diversification, you should be overweighted in your holdings now if you truly believe the potential.

my point above is NOT that current shareholders/posters on here are NOT enthusiastic or believers. instead, it goes to the trading psychology around risk/reward that i believe will prevent the moonshots that happen when the market is artificially manipulated with convertible debt. it is also why i believe the run will start BEFORE they file. as it becomes more and more "obvious" that the company IS created the suspected revenues that we believe are occurring, more on here will start buying "ahead of the run" which will eventually cause a noticeable buy/sell imbalance that will start to move the price forward. as that happens, the long term sit on the fence traders/investors will assume that "someone knows something" or "filing is imminent" and will start piling on so they dont miss the run. that will hopefully create a higher base after initial spike/sell off so that when they do file, it puts us squarely over a penny and basing in multiple pennies based on real, published numbers that provide a conservative multiple on the expected, future growth until it becomes clearer that the results are scale-able across the nation. the reason this is trading in a rather tight range now is because many of the large, long term holders truly believe that. however, there are simply not enough, yet, that are really, aggressively, putting their money where their keyboards are.

again - it is just normal market mechanics based on risk/reward profiles and an emerging company. neither good nor bad but where the "overhang" that TS has referred to several times really comes into play and prevents the "crazy" price predictions even with irrational exuberance in play. as i said before, i believe we are at the front edge of the buying now as strong BIDs keep coming up when MMs try to move the price down. i think we see a slow walk up into the high teens and low 20s before it gets "noticed" (again) and people assume filing is close or someone knows something. recent court ruling show on here with ENDV does provide some solid and analogous precedent that should provide KBM attorneys further pause and counseling with their clients on the mounting risk of moving forward.

$HJOE
#pennystocks