Re: Another attempt to hold the shareprice down?
in response to
by
posted on
Jul 16, 2009 12:17PM
Re: "Somebody wants cheap shares or somebody wants to hold the price down for the time being...."
It seems some people haven't been paying attention or they are recent buyers of the stock. 12 cent stock is already dirt cheap!
There is no attempt here to hold the share price down. It's all about trying to keep the SP from going to zero when the next 10Q comes out. This is a common practice to soften the earnings shock by changing stock-holder expectations now.
Expect a loss in this coming 10Q, likely a substantial one. The tendency in business is to pile on future Q's potential bad results into a current Q financial loss. This loss accrual book keeping will make for a big loss in the current Q, but will help mask losses in future Qs. The idea being that management will already look bad this Q, so why not make things look worse so they can seem to look better next Q.
Ask any seasoned analyst, this is a common practice.
Cautious