Sphere 3D Corp. (ANY)

[esad1]

Sure. I am the Clinton Group. I own 25,000 shares. I want to put pressure on the stock but I do not want to sell, so I short the stock and deliver my shares into the buyer. I still have my original position and I basically borrowed my own shares. Now I have risk to the upside if for some reason the market rises about the level of my short sale. Then I am out. I can cover for a loss or I can close out the short and deliver my shares.

If CGI was short term and they did not want the gain or loss it is a way to extend settlement. But it is mostly used by market manipulators ( think hedge funds ) to shake the trees and get weak retain to sell. They write a letter out of the blue and the market trades down??? If I was a bigger holder I would contact the SEC and get Clinton's trading records. Clearly someone wanted to buy stock and used that ridiculous letter as a reason and they started to sell shares short. The rebound late in the day basically proved they bought few shares and spent a lot of effort for nothing.

There was no news and the danger for someone is if they had inside information. But that is another story. But you do not say you think the price should be above $10 and see the market get sold off.

I am amazed the company has not written a reply and made it public. It seems the company did not release the letter, CGI did which is totally in their right. I would expect the company will say something tomorrow. If this was CGI's way of getting ANY in play it was quite amateurish and naive.