Cytodyn Inc (CYDY)

[Saltz]

IMO the pressure on the SP is directly related to the private raises.

If an investor can sell all their shares and recover their investment and hold the warrants with close to zero risk many will do so. As Chumppunk states "I'm protecting your account and could care less what is ahead". Just eliminate or minimize exposure for your client.

I have participated in several private raises with Paulson Investments and that strategy was discussed. It was tempting as I could have made a profit many times over the last three years and still retained the warrants with zero risk. I think that is the way most play the game. Personally I have enough confidence in this investment that I want the shares from the raises in addition to the warrants so I have retained all of my shares. The difference is this is not my day job and how I pay my bills but to many it is and that's how they play the game. Eliminate risk.

So I don't believe there is something we are missing. That is the doubt that creeps into our minds when we get nervous about our investment - we look for reasons to support the illogical SP. Most of the private money is in at .75 per share with warrants equal to 50% of the total shares purchased good for 5 years. So I do agree with Broker57 it makes little sense to be selling below .75. However selling at .65 is a loss of .10 per share while maintaining control of warrants- that may not be free but the cost is minimal in terms of the cost of your investment.

Example: You purchase 100K shares on the private raise for .75 per share at $75K. In return you get 50K warrants. If you sell the 100K shares at .65 you are negative $10k but you control 50K warrants. That is still a deal many will take. $10K in total risk for 50K warrants. If the deal blows up you loose very little compared to those that purchase on the open market. This is the game that has been going on for some time because of all the cheap shares that are available from the private raises. Most have a 6 month hold to convert to sellable shares so there is a delay on the impact of the private raises on SP. When the cheap shares dry up the equation will change.

Nader is going to do everything he can to prevent another raise below $2. He's counting on some big milestones coming to fruition in the next 6 months. Milestones that will heavily impact the likelihood of FDA Approval.