I often read that the market is manipulated (which I believe it can be) but how would someone or financial institutions be able to keep a stock price at a certain level? If anyone can give a brief explanation I'd appreciate it. Thanks.
It's relatively simple to keep the PPS in a narrow range IF the amount of stock traded each day is small-modest. If there is a sell off (maybe a short raid) the other side buys enough to counter the raid raising the PPS back to "even". If the PPS begins momentum north, the converse is done. This stock is being contolled but I believe it is a good thing at this point. I looking forward to the day when GREAT news is announced and the stock is allowed to reach its own level---this will be a major short squeeze.
My guess is that $2.60 is a source of a large pot of shares coming from the warrants (is it 30M + 30M for Al?). In theory, the hedge funds that have the warrants for 30M shares at $2.60 can keep shorting and cover at $2.60. That's why it's stuck at $2.60 and won't go up until the shorts give up or run out of shares. Expect the shares volume to increase since the higher the pps, the more likely they will be tempted to short and they have until approval to bail out. T