Why would a private investor throw 17 million dollars down the drain to hold on to worthless shares?You keep saying how dumb management is, don't you think that a private investor would do a little bit of due diligence?
Also, deal was priced at about 10% discount to market, so it offered the investor a chance to make a quick 10% return, or so the investor thought.
Not really,We are investing pocket change in comparison. They would have to be complete idiots to invest 17 million and think they would make a quick 10% on the news that MELA was diluting the shares.I don't know that many idiots with 17 million dollars free to burn. Speaking of... Try and Google Adam B's name. Not exactly the track record of someone you'd want representing your company. You mentioned one sided information. Do you suggest Adam B. has both sides?
Same reason why longs are still holding, because of the possibility.However, mgmt team really knows, so I consider it an uneven information exchange sale where 1 side knows a lot more than the other.