SunWorks Inc (SUNWQ)

[SandridgeEnergy]

The CEO did much worse to the share price last year than he ever did to me. I actually like it when he responds to my analysis of the company because he usually ends up divulging something else and digging an even bigger hole for himself. This is why I copy and pasted nearly the entire quote you are referring to the latest article I wrote when he claimed that the filings represented all potential dilution right before changing one of the notes to add more dilution. If what I said had no merits and was not raising concerns among others he would not feel the need to defend himself.

Anyways part of his response to me included this quote (my commentary in blue):

We don't seek these types of notes anymore obviously. The fact is that any dilution that comes from these notes has been disclosed in ever ahead a lot of different queues and case all that queues and case that we've submitted over a long time (except when you changed the SUNworks note to be worse for shareholders after you said this) have disclosed and exposed the delusion that might come and the effect has certainly or almost certainly been taking into account by the market.

This is what I remember our investment professors and schools used to teach us that Wall Street is a perfect market and when the information is out there it's priced into this -- it's taken into account.

Basically he is promoting the efficient market hypothesis here.

So let's look at how the market reacted to both what I had to say, and how they reacted to what he had to say in response.

I will be using data from Interactive Brokers here to make my case, specifically the cost to borrow for shorting.



When the market saw my analysis of the pernicious effects of upcoming dilution and penny stock promotions, they agreed.

When JN gave his response to me, which included him lauding the wisdom of the markets, they agreed even more. That is what the data says.

So if his next thrashing is anything like the previous, I say bring it on.