Notis Global Inc. (fka NGBL)

[236T568]

Well said

worth another read:

Quote:
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Why such a big loss ?
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Putting aside the fact that this this a crappy company with no real business and a ton of lingering risk factors ...

There was a perfect storm which drove the price up.
- There was a small float
- Most of the stock was restricted, I believe, so limited "supply"
- The sector was (foolishly) hot
- They were the biggest or one of the biggest companies in the sector
- They were frequently on TV, because the sector is hot
- The CEO gave off an appearance of professionalism
- Nobody did their homework

Now, there is a perfect storm which has driven the price down, resulting in these big losses (in addition to the fact that it's a crappy company):
- The float is much larger, and more liquid
- Ample supply, with insiders selling as fast as they can
- A financing which is the very textbook definition of "toxic," where the "lender" (and it's a loan, not a financing) has a huge financial incentive to short the stock.
- Sector is no longer hot, and they are no longer the so-called "leader"
- Well-spoken CEO is gone, and selling stock
- No longer on TV
- People have done their homework, know the ugly history of the founder, and now know about SEC and DOJ inquiries (which are likely overblown but it never helps)