"Some say that the institutions are just trading the stock between them..but if this is the case why has the SP gone down 12 cents since May the 3rd. "

Why do you think in the above scenario that the share price would or should not go down.

I contend that most of those shares are from the $1.25 placement and with a 40% tax write off it leaves them down to $0.75 to be profitable. Hence they slow down once the share price hits 0.75.

Why? So that they can get another load of cheap shares in the next financing and others ( Boasteel or friends?) are picking up from dissatisfied holders who get tired and are dumping at these prices.

I think that funds are betting that the cows will not come home for quite a while and that means the pasture is free for them to play in.