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Re: doogdilinger post# 34011

Wednesday, 04/04/2018 11:20:21 AM

Wednesday, April 04, 2018 11:20:21 AM

Post# of 38634
Doog- Very good insights. And I agree with you regarding the shorting. That is why offerings with warrants are so toxic... You deal with a company that will buy the shares and then immediately short sell 50% or more as a hedge. So if the price goes down they can roughly break even or lose a little. But if the price goes up they make money as they either have the warrants or shares to cover and then have many shares to sell at a profit. This is pretty much the model that many of these bottom of the barrel investors use in these situations.