Say you are new to this stock, you put in ten to fifty grand of your hard earned cash at 2$ say. You look at the chart and see the history, sharp up ticks followed by sharp down ticks so you put in a stop loss, sure its ok if you loose a few thousand you think, better then loosing 50% right.
Or say you got in at 1.60$ you see the history. You see that the stock has turned and is heading down now after the sharp up tick, your a savy investor and dont really care about the story or the long term potential. So you sell your 100k shares at market to ensure you make that quick profit. Not a bad week, 10-20k in hand. On to the next.
People get scared and sell at a loss, emotion is the game and what a shame.
And then there are those buying these shares at a bargen compared to what it was a couple weeks ago. Those with stronger hands all beit likely hands that will take profits on the way back up. Less emotional traders and investors in the know, there will be news, there will be income, P 2.0, 100nm, PDAs and so on. This thing will be huge but for now the little fish and those who are worried about watching thier paper gains go away are going to sell and cause it to go down even more.
We likely wont see a contract until the third quarter right, but there will certainly be NRs that push us back over the 52 week highs. The income and industry acceptence though is what will likely put us over 10$ get us to the Nasdaq an a split and then :) O ya you know where this is going!