HESG - Panic Selling, Profit Takers, Dilution, or Market Maker Shennanigans

HESG sank to $.0008 this morning before recovering to $.001 as I type.  After the stock didn't bust out of the gates at the open, investors began to sell their shares and the stock crumbled, continuing to build on an already two day old decline. 

When a stock suffers a 50% decline from its recent highs many questions begin to surface about the reasons for its decline, aside from the obvious.

First lets state the obvious: HESG was up 2300% from its $.0001 low.  If you were up 2300% or even 1000% would it not make even a little sense to lock in profits? 

The problem arises when the amount of profit taking takes the price below that of new investors, who then fear they made a wrong choice and sell their holdings.  The bid begins to fall quicker than a defender on a Lebron James crossover, and suddenly you have other's selling thinking the end is near.

You can probably throw some market maker shennanigans and company selling into the mix, although I have no evidence that the company is diluting at the moment. 

The bottom line is that these penny stocks have a way of shaking out those who have a fear of losing money, and if you can't afford to lose money you should never buy a penny stock.  The risk you take buying a penny stock can pay off with substantial gains.

I think anyone who caught some of the trades at $.0008 today will be rewarded.  Those who sold out on the drop, after support was lost, will probably regret selling their shares.