CG's optimism on stock price at JMP 2013 Securities Conference
Looks like CG is also expecting a big spike in stock price, no? Look at the following quote from the JMP Securities Conference:
"It gives us really just some flexibility of continuing to advance the company moving forward. It's just a tool in the financing tool box, we're not guiding on if, when, how we will deploy this, but it gives us that opportunity. We have high volume, stock, it can be volatile at times. And so this really allows us to take advantage of issuing the least amount of shares at the highest price as possible when we see it fit."
Lots to like about that quote. My key takeaway was his reinforcement to institutional backers: yes, we dilute to raise much needed cash, but we will be neither greedy nor imprudent about the way will do it. And the (relatively) nominal amount we will raise will carry us through to revenue generation. Very high marks to CG for benchmarking bvia dollars (125MM) rather than # of shares.
(And despite the ad nauseum discussions here on shorting, I do have a question. Assuming AA exhausts shares available for purchase, and market makers demand that shorts cover, what timeframe is involved? Must they cover immediately, within X trading days, what? And is $TSLA a realistic model for what we may witness (and experience) in the coming days? Many thanks for responses from people who have traveled this road.)
The tipical case when you absolutely have to deliver the shares (and thus cover the shares shorted) is the case of a takeover. Otherwise you can remain "short" but have to adjust your margins according to your losses. Margin requirements may also change, another risk factor. It really depends on longs now, though, to resist the temptation to sell. Shorts are short of ammunition.