Stock Markets Exposed
Low Price Stock Trading - massive activity - question?
I'm looking for the reason or logic that is behind recent trading activity I'm witnessing. XXX, trades as a OTC penny stock. I have shares that I bought through my normal brokerage account, just as anyone can. XXX is trading at massively high trading volumes now for months, with little to no change in share price. Average daily volume 333,281,908 shares. Several days with well over a billion shares traded. XXX's web site states that there are 10 bil shares outstanding. One last fact, the stock price has plummeted over these months. At .0001 per share during the massive volume period. My question is: How, with only 10 billion shares outstanding, can XXX be so actively traded at this volume and why would XXX sit at the same price and trade billions of shares, when all press and reports about the company are positive? My take is that someone is deliberately swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why go to the expense?
Public Comments
- >>How, with only 10 billion shares outstanding, can XXX be so actively traded at this volume and why would XXX sit at the same price and trade billions of shares, when all press and reports about the company are positive? The market is at a price consensus or is in a consolidation phase. The bulls and bears are in consensus; no one is more powerful than the other. You will also find that penny stocks are usually less volatile than bigger value stocks. >>My take is that someone is deliberately swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why go to the expense? No I doubt anyone would be doing that deliberately. There is no point to such exercise - waste of time and money. Maybe people who bought earlier at a cheaper price are taking profits and people who are hearing the news are buying in. Good Luck!
