trend continuation ii, page-9

Hatch et al,
Thanks for the insightful posts. My take on why the share didn't continue its upward move today: First of all, people scrambled for blue chips after a 200+ point rise in NY.

Perhaps more importantly, the fact is that at every price level there will be renewed temptation for profit taking, particularly from those who bought the .10 shares. There's no escaping that fact, and that's what "dilution" is all about.

But on a positive note, with every exit, there is an entry and gradually the .10 shares will be owned by new people or instos and this sell off will slow from a flow to a trickle.

Without large institutional buying, and I'm talking about 30-50 million share trades, there will not be a re-rating by investors. When the price moved yesterday, it was on a massive buy and the taking out of an entire line. That's what will make the sp go now. Still, at each stage, there will likely be a pause while lemmings leap, lured by 40%, 45% and 50% profits after the cap raising.

How much would I like to see it surge into the 20's? Absolutely as much as you do, fellow holders, but I believe that the best hope for the next move will be a tepid night on Wall St rather than another lurch upwards.

Good luck, and as always, I welcome other points of view.
Cheers. ST