Is due to some entity, (BP, Icahn, etc.)
buying up shares in advance of the hedgies
coming back in...Hedgies want to wait out the
31 days so as to take their huge loss. When they
commence buying, the price goes up.
Meanwhile, someone may buy a 5-10% stake and
make an offer...(Hostile or not)...
Does this make sense to anyone???
It's possible someone took a 13D/g/f position the last 2-3 sessions.
So what about Soros? How much does he got? 2-3 million shares?
Maybe he put his rich buddies into DNDN also?
We'll know soon enough. 12.70 last AH up .05 from close.
It's just like I said..
Most of the big money sold
out (Soros is confirmed)
during the +100,000,000
shares traded in the 2 days after the blindside...
They will hold for 31 days
and then buy back...
But someone, (Icahn BP, etc.)
is buying now...
DNDN has no choice...
Most of their shares are owned
by various billionaires, funds, institutional investors, etc...
The BOD combined owns less than 1%...
And the poison pill only
showers the BOD with millions
of shares but at this stage, they wouldn't dare to invoke
it...This has been a huge F*** up and the street will
never trust them again..
Or it could be smart investors buying a $50 stock for $12? I mean, this company is still at the beginning stages. Set backs will occur and we will see how managements responds to this crisis. My money says issues will be addressed asap and the next earnings will prove it.
I think it is more likely due to a combination of shorts closing there positions and the fact the stock reaction was overdone and many are now realizing the tremendous value here for and FDA approved product whose biggest knock thus far may be that it is priced too high.
stockbus i take it youre referring to wash sales regarding the hedge funds. i'm not sure they have the same rules. they dont pay much taxes on gains. i doubt they can use losses. not sure they have wash sale rule either. they make 1000's of trades a day sometimes. i think the stuff youre talking about only pertains to personal income taxes. corporations pay taxes on their income for the year.
Met...It is complicated,
(hedgies can opt in or out)..
Most use capital gains...
This could be shorts covering down here and they would
be wise to do so...
But someone is buying in advance of the $3.5Billion
Here is something I copied
The wash sale and straddle rules can be avoided
through a mark-to-market election under Section 475.
This election converts almost all trading income and losses
of a hedge fund (both realized and unrealized) to ordinary
taxable income or loss. This election can be useful for
short-term traders because it eliminates a number of
complex tax rules and is beneficial if the fund experie nces
a loss (since the loss would be ordinary instead of capital).
However, this election eliminates the potential significant
tax benefits of long-term capital gain treatment and
deferral of unrealized gains and should not be made
without a thorough consideration of the tax consequences