How do you invest 10 million of short funds and lose almost 40 million?
Because they are stubborn, out of "caution" they deem it prudent to cover 25% of this week's short money at a price of 1.60, when Tom issues a news release in the next couple weeks (or sooner?) that the company has provided its mitigation plan to the ACOE
Ouch, that is a 50% fast loss on 2.5 million, or 1.25 million.
Because they are such sharpies, out of caution they deem it prudent to cover another 25% of this week's 10 million short money at a price of $3.00, when the ROD issues, within the next 4 weeks.
Ouch, that is a fast 200% loss on the second 2.5 million, or 5 million.
But their college finance professors told them how smart they are, how they could game the market with tricks and clever stuff and using OPM, other people's money.
Hey wah happened?
Because they are brilliant, out of caution they deem it prudent financially to cover another 25% of this week's short money at a price of $4.50 on November 4th, when the Big Guy is all the rage in a Landslide and every trump and republican dollar in America squeezes the thing to 5 bucks but they get out luckily (and being so smart) at $4.50, a loss of a mere 350%, or 8.75 million.
Because they are so diabolically clever in finance, they know the share price will come back down to earth. They've still got that last 2.5 million short to pare some of their modest losses.
So clever they are.
NEM and Barrack announce their buyout for 4.6 billion on Jan 2nd of the new year, share price of $10 when the stock market opens but NAK's share price is not trading a penny. LOCKED. A loss of another 22.5 million.
Total loss on their 10 million invested short this week of $37.25.
Boy they are so darn brilliant and such good writers too.
Today they walloped the stock, lol.. You know what follows, they lose a couple of wives in divorces who never cared for them much anyway, and bankruptcies and eviction from their office for non payment of rent,and all that good stuff to follow...
They can just be a little wrong and get crushed to death financially. One of the problems with being short on an explosive stock.
"mama told me not to come. mama told me not to come. She said, that ain't the way to have fun,....son, ...that ain't the way to have fun....."
3 Dog Night.
PS: when they are cleaning out their desks amid bitter recriminations, the door to their office gives a knock knock. One of them says, "I forgot to tell you guys our landlord says he is suing us, it is probably the constable with the law suit papers."
Wrong, it is a defamation/libel suit from Northern Dynasty!
The constable, "Somebody here has to sign for these papers. Which one of you guys will sign?"
