Banro Corp. fka BAA

[baystock1]

Manipulation is a crime and where there is a crime there has to be a motive. 2 motives that come to mind:

1) transfer the most shares at the lowest price from weak hand retailers and institutions to the strong hand institutions. The weak hand institutions being the ones with market cap rules or others who feel compelled to window dress their portfolios by removing positions from their books that are showing a huge paper loss, regardless of whether or not they have a very favorable opinion on the merits of the stock in the long term.

2)increase the value of warrants associated with financings. For example warrants with strike price of 15 cents are much more valuable than warrants with a strike price of $1.


So it seems both the strong hand institutions and Banro are benefiting from the current extremely depressed share price. Banro benefits because the gold streaming financing is all the more compelling to the financier if it comes with many many millions of warrants for shares at 15 cents strike price for shares that will be trading for dollars in a few years.