Smart money piling in on the short side - spike in short interest, impossible to borrow. Why?
Shares outstanding after recent dilution = 184m! That's 7x more than most of the news outlets (including Yahoo) have listed. Yahoo Finance lists a $280m market cap for HK. HK's market cap is actually $2bn after dilution.
Good luck to those indy investors who didn't take the time to read the 8-k filed on 2/14 (or don't know how to calculate shares outstanding using the treasury method).
Thank's I seen that report,in fact I posted it on the IH board.Has some fine info and is easy to read,but it is lacking on detail's about who is the T/A.Knowing who the T/A going forward would show us if FW will be changeing the share structure? Dilution is a very sticky point.imo GL
I would say about 27 mil. old ram shares plus 73 mil. Floyd shares,Then convertible note could be 60 mil. shares and warrants 37 mil.,but they would bring in $110 mil.So right now about 100 mil. shares out.
What's likely happening is that large shareholders who suddenly got a 4+x return on their investment overnight for no fundamental reason are blowing (BLOWING) out of stock and then indy investors see a "double-bottom" or whatever other stupid technical indicator they look at and buy the thing up.
The "bag" is being transferred from those who know to those who don't know.
Who will be holding this bag in the end?
1) Those who took profits on a fallaciously high stock price?
2) Those who looked at some technical mumbo-jumbo and talked tough on the message boards about how much they're going to buy as the stock-price tanks toward fair value?