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Re: EARL69 post# 2349

Friday, 05/16/2014 1:23:48 PM

Friday, May 16, 2014 1:23:48 PM

Post# of 5034
Yes, interesting. Actual dollars are not large, but someone actually wants a few of the shares. Maybe the company has found a pump/dump shop, which means shareholders may be about to be taken for a wild ride.

P/D shops love brain damaged OTC penny stocks with shelf registrations. They orchestrate a rally (look at PLUG) and generate much trading activity, while steadily establishing a short position. They cover the short with below market S-1 at nice profit and get free warrants as added sweetener. Seen this happen with several companies recently.

This process does produce cash for the company, abet at cost of dilution. It's a lot better for Platinum than the status quo, which is costing them cash every quarter. In the end, common holders not wise enough to sell during the pump are left holding the bag.

Good luck to VSTA holders -- you might get a lucky break.


Everything I post is my biased opinion.

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