this should be trading under $1.50; agreed, why should these buyers make quick profits while shareholders are severely diluted. Outstanding shares are now around 100 million shares outstanding. OUTRAGEOUS
starting to think the pumpers on here work for the folks who bought 16.5 million shares at $1.50; I want to know why they deserve the instant profit they are getting on paper this moment, why?
vince: you missed Econ 101, but I'll do my best in a short post. No supply and demand diagrams, I promise, but you should study their meaning.
The insts who bought at 1.50 don't "deserve" profit. You are just assuming someone is basing the system on that idea. When you want to sell a LOT of units of something that is priced, at the margin, at 1.80-2.00, you have to offer a discount, or you cannot sell the LOT. In V's case, there was also the (considerable) risk the buyers were taking, to be compensated for.
Notice it is just the same in the opposite case, when you want to buy a LOT of a company's shares, ie. a takeover. The share price cannot be the market price, because you cannot get enough people to sell, at the margin - you have to offer a PREMIUM, just as Velti had to offer a SUBSIDY.