NorthWest Biotherapeutics Inc (NWBO)

[jimmy667]

There is a situation where this could be a red flag.
There is a gross and flagrant aberration in Securities Laws which allows Publically Traded Companies to tell potential pipe investors of an intent to sell them shares and the price range beforehand, then those potential investors can dump there loss harvest holdings and replace them 30+ days later with the newly minted shares. Or simply short sale the shares and cover with the newly minted ones. Hard to believe this is allowed under FINRA regulations until one realizes FINRA is a Industry self regulation authority. The rational to let this happen is that "without this provision/exception these companies could not raise money." So CEOs make a career out of these types of deals and all perfectly acceptable to FINRA. FINRA is the self regulation authority that allows basically unlimited short selling as long as the account has equity in excess of $25 million. Therefore a capitalistic strategy of some hedge funds is to for instance as follows: Take $100 mil of investors money and open a fund. Then short sell $1 billion ( more or less) of small struggling companies stock netting $1 billion of cash in the account to invest in portfolio of bonds and stable dividend paying Blue Chips stocks. A prudently invested account of stocks and bonds should yield 5 to 7% income. However since the the account is highly leveraged 100 million to 1 billion now yields 50-70%. The hedge funds takes by contract 30% off the top for being in the FINRA cabal and the Fund investors get 30% returns more or less depending on the performance of the hedge fund. Hedge fund losses or belly up is 100% borne by the investors.
NWBO is not implicated in this.