it is for downside protection by insts. So insts know it will never get there in that time frame. On the hindsight shorts can buy calls to cover their short instead of buying in the open mkt. Short in the open mkt and then buy calls and exercise them to cover. Thats exactly what is going on.
slow and steady covering, they do this for a month or so and the short shs would go under 5 million. And the PPS wont even budge. They are banking on impatient people bailing out as the rest of the market is going up very fast. Somehow able to keep it down and cover some.
correct, they have close to 4 bucks in book value. And 2 approved products which could get them 500 million in revenue a year with profilts in the 100 million a year, it is a 1.5 to 2 billion company as of now, now counting the other things they have the in the pipeline. All in all by 2020 it will be a 5 billion mkt cap.
this is already priced as if we have heavy penalties on both lawsuits and current valuation also assumes a penalty of over a billion. Any penalties less than a billion and this would be good.
because at that price point John can take it private with cash on hand. 8 * 30 million shs and he can successfully pass the vote if it goes below 8. Will be the scam of the century but I can see it happening. Shorts will win this one.
how do you justify buying with financial engineering, this seriously belongs in the 30 buck range
John can vote to acquire the remaining shs for 8 bucks a share , so 30 million shs for 240 million and get this done, take it private. He can deal with the lawsuits later.
No simple economics, majority wins, even if it was 51% longs and 49% longs , longs would have won. When you are trading with a thin float which is the market, the majority trade wins. So with almost 80% of the float short, they have to win, dont fight it go with the flow and the momentum, they will take this down all the way cover in the pennies before they unshackle it. Only way out is a buyout of the company or being taken private. No other hope.
Up volume is nothing, if you want to see volume in millions you need an up open and more dumping will follow. too easy, this company is a scam and will be BK soon after the lawsuits, some big shorts think that way atleast.