Cop, I have seen this ploy before and for those with patience, we will be rewarded. I no longer hold a share called VPG, and I'm definitely not promoting it here - but what happened with Valad was this:
There was a cap placed at a particular price that was positively daunting. There were only two ways for it to go: Either the parties who placed it there remove it or it got demolished by enthusiastic investors.
Why place a cap? In order to get people to sell at prices just under the cap. In this case, what I believe to be the case is this: The cap will remain in place until the buyer gets all they want at .10 or below. When they are loaded up, the cap will be removed and it will push onwards. As I type, the cap of nearly 7 million shares sits at .11, and it will be that number that we want to watch.
If the sp blasts through that point, we'll see .15, but I don't expect to see that today. Those shares represent over a half million dollars - small change for a big player, but way too big for most investors to even dent.
Why might a cap be placed? For good reasons, not bad. I read it as a positive thing. Incidentally, the caps on VPG's prices were place at .072, .081 and prices like that. When they were removed, the price pushed up to an eventual .16 before pulling back a bit. That's what history has taught me, and this looks identical in terms of the buy/sell side. Hope that helps in the thinking, and I'm always glad to read alternative points of view. Thanks
PRR Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
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