In my opinion, this stock and company have always
Post# of 11899
In my opinion, this stock and company have always been rather unknown. I believe that most of the "interest" we witness daily on message boards are just market manipulators working both sides of the arguments in an attempt to game sentiment and flip a quick buck. IMO most of the daily volume is phony and likewise most of the sentiment among the usual suspects is phony and highly questionable. Sorry to be so negative and cynical but such a perspective is borne from years of experience in the market and a deep understanding of what really goes on down in the penny scump swamp. The manipulators will tell you all about it, they have no shame, they do not even try to hide it.
Just look at the facts. RFMK had a mere 26 holders of record at the end of 2011. Since we still have zero transparency for RFMK up to now, we cannot possibly know how many holders of record there are now but we can guess. MJNA for instance has a market cap over $200M and has about 500 holders, CBIS has a market cap of over $40M and has just under 200 holders so even if we are liberal in our estimates, we can probably safely assume that not more than 100 investors are holding RFMK or likely even interested or know about the company/stock. If we average between 25 and 100 holders we can assume that RFMK perhaps MAYBE has about 60 holders or thereabouts. This would mean that RFMK is likely to experience very quiet times, indeed. The float is over 1.5B now and so with an average price of about $0.0019, an average position/stake in the company for most retail investors would likely be between 1M and 10M shares, so averaging about 5.5M shares which is very near a $10,000 investment, which seems reasonable. That would mean that 60 real investors would altogether own roughly 330M shares which is only a fraction of the float, likely about one third. Another third of the float is probably insiders who have converted pref shares for common and also large institutional holders like IronRidge with their roughly 160M shares. This would mean that there is very nearly a whole other third, maybe ~300M shares which are just floating around in the market place; probably accounting for MM's/brokerages inventories and assorted "players" in the market. Actually I would not be surprised if such positions would account for more like 400M shares or so. These shares are likely in the hands of very weak players, who wish to flip them back and forth to each other in order to game any other players in the market they can to turn a quick profit. Many assumptions are made with this thesis, but if correct this would mean that even on the record days of 250M shares traded intraday, the float is still no where near being "locked up". So IMO thinking that the float is getting "locked up" by long term investors is just naive and way off the mark. This would also mean that it is rather comical and amusing for the daily bashers to pound the table that a few ticks down in the PPS necessarily means that holders are "selling" or "dumping"; no they are not. It seems rather obvious that possibly nearly a third of the entire float in RFMK is just a bunch of day trading shorting and covering flippers toying around with the stock for lunch money, nothing more. This stock is a train wreck of daily BS, just observe the daily FINRA numbers which the bashers just love to pound the table about being irrelevant, yet are quite relevant because it shows that since typically almost or sometimes over half of the shares traded are short sales it means that 98%+ of the daily volume is just manipulative trading ("wash trades"), like I have been talking about for years.
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Simply put, very few real investors even know about RFMK and so the investor interest is very low and thus the potential for price and volume manipulation is very high, which renders the "technicals" meaningless. So much for that golden cross which looked to be coming for months, the 50 DMA crossed the 200 DMA in these last few days and nothing has happened other than 99%+ of the few shares traded daily being shorts and covers (MMs playing with themselves) and dwindling volume and falling PPS. Very little actual money is playing in this stock right now but that does not mean that it will always be so. The bashers just love to throw the stock under the bus citing recent PPS movements in the chart but they do not understand the concept that the current PPS fluctuations mean NOTHING at all. The potential for current RFMK longs is that in the future the company story progresses to the point wherein a larger investor audience becomes interested in going long RFMK and that by itself could add many hundreds of new investors into the pool which could push the stock to levels we can only imagine.
Since nothing is really happening with RFMK right now and no one seems to be offering up any interesting DD on the product or the company, perhaps RFMK followers may find these links an interesting read; on "wash trades" and how the regulators are beginning to crack down on daily market manipulation.
http://www.reuters.com/article/2013/03/18/cft...EM20130318
"U.S. regulators probing high-speed traders for 'wash trades'"
http://www.calgaryherald.com/business/Calgary...story.html
http://www.albertasecurities.com/Enforcement/...6647v1.pdf
GLTA
$RFMK!