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Actually I do want higher highs but not through some weirdo message board poster's concocted manipulation schemes. I'll take my gains the normal way....buying based on positive news and excitement.
I am little disappointed you don't practice what you preach. Why didn't you manipulate the close today? That paper gain of .003 would've made my portfolio look awesome!
Say have you ever heard of this thing called a ponzi scheme? Right up your alley "high cotton"
Could it be that your participating in one of those sophisticated ERHC investment strategies and if the price moves up you lose money? Hmmmmmm
and apparently you suffer from poor reading comprehension skills as i have railed management for doing such a bad PP that most likely enabled funds to use this scheme. oh and believe me if i could, i would have done the same except im just a lowly retail guy and didnt get a piece of the PP and have never actively traded this stock.
got any deals you can offer me where i can't lose??? and please, im not interested in any manipulation/painting the tape schemes.
this deserves a nomination for the message board hall of fame....
1) this strategy wont work and you and the other socialists who will do it will lose money
2) what you are doing is a form of manipulation
3) why didnt you paint the tape today high cotton? im disapointed in you. it's for the greater good!
do you live in Salem?
WHY DIDNT YOU PAINT THE TAPE??????
is your last name McCarthy by chance?
WHY DIDNT YOU PAINT THE TAPE??????
is your last name McCarthy by chance?
apparently since im not dumb enough to paint the tape and buy blindly at the ask, then i am a basher. i know, i shouldnt value my money and earnings for the greater good of folks like high cotton. sometimes the level of ridiculousness on this board is hard to believe.
I AM BATMAN!
sorry but doing that will NOT make the SP go higher. if you believe it does...why dont you buy 50 shares at the end of each day?? hahaha. wow.
what's sad is that i really can't tell if this is a joke. nothing surprises me on this board
please tell me this is a joke...
krom - but bet #1 isnt risk free....you could develop tendinitis in your elbow by flipping the coin too much from all the people that will take that option. and then the taker of the bet would have to pay your rehab bill and therefore not make as much profit.
ridiculous? yes...as ridiculous as TOB's definition of risk-free.
dude i know - for about the 90th time....we are looking at risk in terms of dollars paid out and how much you can actually lose. YOU CAN'T LOSE. that is the entire point...not diminishing profits. let me guess, you think the risk-free rate is not actually risk-free? we are looking at risk-free the way 99.9% of people look at risk-free or riskless...meaning you put up X amount of dollars and there is 0 probability that you can actually lose any portion of X. im done with this though as we have entirely different definitions.
on another note, what are your thoughts on the shares being unrestricted? i thought management did a good deal according to you?
Your definition and application of risk and risk less is much different than any definition Or application i have seen or dealt with in the financial industry in my 7 years of working in the industry and 4 years of study.
Hard To believe you still don't get it...
IT
IS
RISKLESS
Also I know you have only been here since the date of the r&r conference but strategyone is one of the more credible and connected posters on here and when he says he knows firsthand of funds shorting that were part of the pp, you can bet I believe it. Plus it's a common strategy done often in penny land so I don't see how you fail to grasp it and think is so implausible.
Also I highly doubt these funds are using IB to short. They probably have prime brokers with large stock loan desks who can get a borrow much easier and have negotiated margin rates
TOB - dk has confirmed through email there are no restrictions. Care to revisit your thoughts? Probably not since you are now talking ur book pretty heavily today
TOB - you said this on Friday:
If indeed the PP sale shares are unrestricted, as Middy has suggested, then yes, you could make the transaction alleged for a quick 6 to 8 cent profit. If that was the case, then I will join the gang howling against management. This would be most irregular and indeed, quite absurd
i'll simply leave it at that.
TOB - how much cash on hand did GPXM have? did they have enough cash to last them 3-5 years?
keep on keepin on. sorry but you wont convince me otherwise.
not accusing them of lying...simply saying that the deal was pretty much worked out but not FINAL by 9/15...that's what the SP tells me.
edit: or if it wasnt final, someone had an inkling that a PP was coming.
krom - erhc announced the deal on 10/7 and the previous COB price was .29. ERHC also "presented" (i used that in paranthese on purpose) at the R&R show on 9/15. previous COB was .365 and closed at .305 on 9/15. Think the deal was already known/done by then?? hmmm. just food for thought.
agreed - funds can't invest in penny stocks if their strategy (and subsequently their prospectus) stipulates they can't. otherwise, there is no "law" that says a fund can't buy penny stocks. that's usually the going myth that there is some mythical law that ALL institutions can't buy a stock under X price.
it's legal to short penny stocks in the US but not alot of brokers allow it from a risk standpoint. i believe interactive brokers is one of the main firms you can do it through. just one of those message board myths that get's passed around (similar to the myth that institutions/funds can't buy stocks under 1 dollar or whatever the going myth is now)
short interest is a SNAPSHOT that is 2 weeks behind. it does NOT capture intra-period shorts that are closed. therefore, your assumption is again...wrong.
on a sidenote....i really don't think the SI list is all that accurate. im sure there are many that go unreported, especially on the OTCBB. It is the exchange that tracks the data/reports it and let's face it...the OTCBB is the wild west. to lend credence to this point...i have never seen erhe on the Reg SHO list yet you can not tell me that there has never been fails to deliver in ERHC? sorry.
sneak - sorry...but you are simply wrong.
Edit : Looks like my double post taps me out for the day. Damn this iPad. See ya at midnight krom...haha.
You missEd my edit....I said you could short there and then exercise if the market gets away from you. I have seen nothing that says these were done under 144. I guess a mail to dk is in store.
You misunderstood... I meant if the sp goes to .35 then you short there and earn the 6 cent spread by exercising the warrants if your short gets away from you and the sp rallies. Also I'm 99% certain these were not issued under rule 144.
and i will end with this...it's not going to break the company company. it simply causes me so much angst in that it was completely un-needed, pointless and dilutes you and I for no reason. doing a PIPE out of desperation for cash is one thing...doing a PIPE just to do it AT market lows is another. with all that said...I hope and think phase 2 will bring happy times for us all.
also...institutional investors almost always buy these things. what makes you think its otherwise? i would say its closer to 100% and not 2%
2IRA's...
here is a very simplified version of Krom's strategy that is used in conjunction with deals like this. ERHE agrees to a deal when the SP is say .35 for .22/share. Fund A that bought those shares then goes out and sells short once the deal is announced at say .30. Right there, they can cover there short using the shares they bought at .22. therefore, they received .30 and paid .22 or a risk free profit of .08. alternatively, the same can be done when the share price goes over .29 with the warrants. the fund is not "shorting the warrants" as TOB misconstrued. you are shorting AGAINST the warrants. SP goes to .35, you exercise the warrants at .29 and make .06. and ALL of this would NOT show up on the short interest list because the SI list is a snapshot of a particular period (2 weeks behind) for only OPEN shorts...not ones that were already covered.
finally, i am FULLY aware (trust me, i work in finance) that institutions dont do everything risk free....but some deals are and this is one of them. its why small companies like this get preyed upon all the time and why it was so frustrating for erhc to do this. most of the time, a small company is desparate for cash and FORCED to do a deal like this. ERHC did NOT have to do this at all as we have plenty of cash.
Hope this was in plain enough english for you...
you have zero credibility. no one said anyone was "shorting warrants" and the fund is not risking 2mm to make 1%. i thought you had all kinds of market prowess??? hahahaha
so strategyone is completely wrong??? let's see...amj vs strat1. i know where 98% of the board is leaning on this one...
actually mr market doesnt matter....they make money EITHER way...unreal how people can't grasp this.
krom - i would give up. its a fruitless effort. they simply can't understand the concept of how institutions make money...especially riskless money. it's evidenced in their misconceptions about specific stock price moves (they dont get that it DOESNT matter which direction the market moves...you make money either way).
most probably dont have much more than remedial math/stock market training and very little understanding of how these things actually work. there aren't 144a etc rules for nothing.
hilarious!
actually it's 100% accurate...and why people managing money usually make alot more than the retail guy because they actually put these things together and then execute them.
unfortunately the light isnt usually on...
So apparently tax loss selling took place starting in sept??? Rightttt. Sneak, shorting is very common after a deal like this. Its a great way to make sure money for the buyers. Oh and I put 100% stock into what strategy one says....and krom just proved it out for everyone to see. Many of us called this as the deal came out.
it was also against the shares most likely....sell in the 30s and .20s and buy back at .22 and keep doing it everytime the shares go above .22 until the shares are exhausted. it means the market has to chew through millions of shares before it can make any meaningful move. im sure there will also be difficulties sustaining anything above .29 once it gets there.