Yes, the pink sheets market is just this way, most
Post# of 11899
Yes, the pink sheets market is just this way, most of the stocks are thinly traded and I know many will think that a day wherein we see a few tens of millions of shares trade is a high volume day but it is just above average volume because lately the volume has been enemic, even 20M or 40M or 50M share days I would still classify as low volume. The O/S is over 1B so even 20M shares traded intraday is still less than 2% of the total shares trading in the company. For a companys market cap to be valued up OR down 10%, 20%, 30% or more in a single day by 2% or less of its total number of shares is just a joke, its not even funny, it merely shows how thin the pink sheets are and it means absolutely nothing. The bashers will come out on days we are down 25% and tell us all "I told you so"s and the pumpers will come out on up 25% days to scream about how RFMK is "going to the moon" but in reality if the stock is not trading at least 100M shares per day (10% of O/S) then I would say any pps moves over 10% to 15% are a stretch and are just paints by whomever is shuffling shares about on that day. Do not assume anything, do not take anything for granted, there can be many reasons the mechanics of the stock trade in a particular fashion on any given day. The percentage change on such low volume has no bearing on the fundamental valuation of the company or its current progress.
One must realize that the only reason some participant who desires the pps down lower does not simply print a 100 share trade at .0001 seconds after the opening bell is merely because a second later some other participants will trade it higher than that, it is probably an unsustainable pps so it would mean nothing to print it. If that pps could be printed with larger volume, say 100M shares then it would mean a great deal, however then you run into the problem of actually finding anyone with 100M shares who would agree to sell you that many shares at such a low price. I happen to think that .001 is an absolute steal of a price for RFMK, but even such bullish sentiment comes with the thought that such a price is a good value only if the O/S remains where it is. If the next day it was found out that the O/S had climbed to 2B then perhaps that price would no longer be a good buy price but merely a price at which to simply hold.
The problem is the trade for trade restriction placed on the stock restricts large buy volume to some degree and so the volume diminishes and becomes thinly traded and the MM games become exacerbated and more obvious. One way around some of this volatility is to simply space out your buying and buy only in small blocks once in a while over a long period of time at various price points. Many will mock you and laugh and make fun that you are "long" and "investing" in a "stinky" pink but the alternative is to play the daily fluctuations and that can be quite a risky game for some. The other alternative is to do as most bashers suggest and get completely out of the "stinky" pink market altogether, but that is not really a solution is it? I imagine this is the "strategy" for most of the them because they have made so many poor day trading decisions they have lost so much money in the daily flipping game, they have lost their nerve to take risk and think that all of the stocks are just scams and all those who play it will lose all their money like they did. They will make the claim that no one loses any money listening to them because they tell everyone not to play any of the stocks, but these "saviors" are merely suggesting for all to basically just give up like they have, it is really not a solution or strategy to invest and make money.
Do or do not, there is no try.
$RFMK!