NorthWest Biotherapeutics Inc (NWBO)

[biosectinvestor]

These companies are usually OTC, so it is a limited group of even retail that will buy. Institutions generally won’t except those who want to dabble in the volatility. And then you have the posters that constantly talk about “good governance” and make up all manner of fake scandals usually climaxing with a “publication” from an unknown but important sounding anonymous group.

Then lastly, I have mentioned this before, these groups scrutinize many companies for particular vulnerabilities. As above they might land on “governance”, which is pretty generic. But they can also find what I call their favorite share piñata, the most favored nations clauses that are often in the financing or other contracts such companies will often have. The purpose of the clause is to prevent dilution and a lower price, but when triggered through an aggressive attack, as we saw here, they spill out years worth of past money deals in massively depreciated shares. It’s a repeat pattern that I have seen. And I am sure it is no accident that the firms target companies with these provisions. They do not alert anyone, they do not talk about it, but they know what will happen if they destroy the price and then the company needs another round of financing at a low price. It triggers those past contracts.

So I have no problem believing this happens. I have seen it too many times. I would not call it all “naked shorting”, it is a whole game plan if short and distort, and as I’ve generally said, the mire they deprive these companies of access to cheaper capital, the more they can push them into deals that, even if they are not the actual finding company, will still lead to more dilution and more shares in the marketplace for highly speculative companies that do not have access to the full depths of the capital markets when they are particularly, for instance, not on a major exchange and are treated as a “penny stock”. For these guys, there are many ways to profit in underhanded ways that are, ultimately, still “legal”.