You're right, Serf. Toxic financing is legal, and now the norm for the penny market, it appears.
The problem now, I think, is that there are so many new PIPE financing funds all competing for the same diminishing pool of penny dollars. The microcap market is being flooded with new companies whose sole reason for existence is to be a vehicle for dumping shares.
I read posts daily where investors are shocked at the recent meltdowns of popular stocks, saying things like "but the pump hadn't even gotten started..."
What I think they don't realize is that the funds no longer have the inclination, or possibly even the luxury, to let these stocks run. That's soooo 2005. The goal now, from what I can tell, is to unload as many shares as quickly and possible, and move onto the next project.
Shorting is not illegal either...the only problem I have is when people don't disclose their trading strategy, but instead attempt to manipulate PPS through intimidation and rumors. But again, I don't expect anything to change anytime soon.
Sadly, given how many scams are out there, shorting pennies actually looks like the only trading strategy where the odds are in the trader's favor. But what does it mean when the companies are deliberately set up to be shorted, and the company itself is in on the action?
It makes my head hurt and my stomach a little queasy. Maybe it's time to get a real job.
_______________________________________________________
If you take anything I say as advice, you're crazier than I am.
