Pic - I think you hit on something important. If a company insider purchases $50k worth of stock, yes the price may go to .05 in the very short term. However, once the investor community found out about an insider purchase (through filing with the SEC), I think the price would go much higher as that would be a great boost in confidence to those on the fence about establishing new position or adding to positions.

I know the insiders already have a lot of shares, but it would go a long way to have a purchase in the open market, especially at these levels.