Picture this,You are a young go ahead company with 36 million in...

Picture this,

You are a young go ahead company with 36 million in the bank you decide to raise more money to speed your growth plans so you work hard to push your SP up to say around $ 3.00.
You then begin to discuss your plans to raise money with certain financial companies, these companies quickly check you out and decide you are a good risk.

Said companies know a good thing and they know they are going to get the placement so to get as many shares in the placement as possible they need the SP as cheap as possible, they are bound by confidentiallity and cannot be seen to be knocking the SP so they leak to their mates and their mates sell it off because they know they will be able to buy back later at less.
Hence in situations like this there is a rise in SP before negotiations then a fall in SP as the negotiations continue, then usually a run down to around the placement price as the usual suspects sell off to where they expect the "sophisticated" buyers of the placement are willing to take their "stag" or if you like their profit, lets face it a 1% profit in a month is 12% annualized why would you not take it after all it was handed to you on a platter.

falko