re: "can you please translate? "
*Pourrait ont juré que je tapais en anglais. :)
What , the remark about warrants? You buy the right to buy a stock at a certain price after a certain date. Often it's offered as a "sweetener deal. Say a stock is at $0.25, buy the stock and get a $0.50 warrant, but you pay less than that. The stock goes to .75 , the date rolls around. A million new shares, whatever, get bought @0.50, many or most, depending, are expected to be turned around and resold right away. Firstoff a bunch of sales are going to start going through the bid, using up existing buy offer blocks, so MM is going to keep notching down the bid price, but selling will tend to cease at or just above 0.50 because nobody wants to sell at a loss.
"Somebody is holding the share price down"
I was agreeing with the idea that the current stock price is too low but some big block buyer(s) appear to be getting shares from somewhere at $3.00 or a few pennies above. This suggests the seller(s) would lose money below $3.00 so selling is curtailed there. When the trickle of new buyers start sending the price up a bit, selling resumes, holding the share price back down again.
It's not warrants but the price action is similarly artficial, strictly monetary/trading based, appears governed by some pre-arranged ball-park, round-number price and not fundamental stock metrics. Of course, a developmental stage company's perceived valuation is mostly dependant on speculative sentiment and intangibles, so any money in excess of the low volume on any given day will set the price. This is the opposite of a large cap where metrics such as the price of oil, same store sales, i.e. tangible fundaments, all get tallied up by analysts and result in a calculated valuation based stock price. Also large caps trading in the billion dollar volume range are beyond the clout of a typical hedge fund or high-roller's $10 to $100 million, to move the stock price in any significant way.
re:" Not sure (if true hypothetically) what this means going forward."
It probably means that some pre-positioning is going on at somewhat arbitrary cheap-as-possible prices. In spite of various hooplahs, some of us, some people, have their own theories about AD, and who's right, and are making investment decisions accordingly.
Maybe it's short covering. Maybe, as somebody else voiced a concern recently, a takeover attempt could be made. Come to think of it, registering a bunch of shares to hold in reserve would make a leveraged takeover less attractive.
It means that not everyone is dropping everything to go off and buy Biogen. It means Anavex is going to go back up at some point in the future. imo
*Could have sworn I was typing in English. :)
