Why does stock always lose its gains at EOD?

[Reinhard Mirkovich]

I own one stock that has lost most of its purchase value. I see a very consistent pattern in its activity since my purchase. During the day, the stock usually posts gains - some fairly impressive - but every day, inevitably those gains are lost and it always retreats with a loss for the day. This is how the stock shed over 50% of its value over a few weeks. Why is its behavior so consistent? Is there some market influence that would account for such odd activity?

[Novice Investing]

Hi, Reinhard:

While there may be some institutional selling activity for the aforementioned stock since the day you made your purchase, in the long run, it can't fall down forever. If a share is below its fair value, eventually it will rise back up towards its fair value. The question is: what is the fair value of EOD? This is what I can't assess. Since you have followed this stock longer than I do, would you mind telling us what EOD does, etc etc?

[Reinhard Mirkovich]

EOD is my acronym for "End of the Day". The stock I am talking about is GFET-PK. Today is another example - the stock had been gaining about 8% earlier in the day. Now it is dropping back to much smaller gains and, I predict, will end the day flat or with a small loss.

[Novice Investing]

Oops. My bad. But it applies to all kind of stock. How much is its fair value? How much is it trading now?

[Fredledingue]

Oh, it's a Pink Sheet stock! That explain everything.
.PK stocks often move by insane proportion in absence of any news.
The problem is that in prolonged absence of news, their price decline week after week to infinite lows.
And that's what happen most of the time.

You buy .PK stock, say $2, one month later it's at $1, one year later it's at .10 cents, 1 and 1/2 year later it's at .01 cents and 2 years later it's at 0.0001 (one hundred of a cent).

I don't know why poeple buy these stocks. I know even less why I bought some of these stock myself. Maybe I had too much money... LOL