InvestorsHub Logo
Followers 35
Posts 3578
Boards Moderated 0
Alias Born 02/17/2013

Re: umiak post# 34924

Friday, 03/16/2018 3:32:06 PM

Friday, March 16, 2018 3:32:06 PM

Post# of 45833
I don't have any reason to believe this is the case here, but there are stocks where the lender will short the stock, and use their newly unrestricted shares to cover. This is really beneficial to a toxic lender, they drive the price down and avoid the short squeeze when they cover. Off the top of my head I know DRYS pulled that stunt, but I know there are others, but I honestly don't have any reason to believe that is the case for SIGO. DRYS put in an SEC filing telling shareholders what they were doing, otherwise it would likely be a crime.

When Fife lends an OTC money the stocks tend to move wildly, both up and down. MGT is the most recent one I can think of, he turned a $2.4 million "loan" into somewhere between $14 and $22 million for himself, and shareholders took a beating if they didn't get out. I would expect the same with SIGO, but you never know, and he hasn't even started selling yet.