Beasot35- They want the data to look good, low float etc. They want to sell more then what people think they have in the float so investors think any slight movement the stock will rise.
Here is a good way to look at it.
If a new pump is at $1 and they have a 100,000,000 float and they spend money and get people lined up to sell shares, they want to make as much $1 sales as they can before the scheme is exposed and knowing that more debt shares will follow to cover shorts, this is why they do it.
If they start and pump at $1 and they sell 100,000,000 for $100,000,000, they are out of shares to sell. If they issue another 100,000,000 debt shares to the float they wont be able to sell them for $1 because now there are 200,000,000 in the float so they can only sell the other 100,000,000 for $.50, then another 100,000,000 for $.10.
The more they add to the float in real time, the less money they make. That is why they add shares in fake time.
If they sell 100,000,000 at $1 and raise $100,000,000 and everyone only sees the 100,000,000 float, anyone buying 100,000, 10,000 or even 100 shares thinks they own that percentage of that 100,000,000 float when they may own only a fraction of what they think they own due to the added naked shares in the market that no one knows about.
If people keep buying shares for $1 you can bet they will keep selling naked as long as that cash keeps rolling in and knowing billions of shares will be soon available cheap to cover the over sold. Eventually the $1 per shares will slow down and then enters the debt dilution to cover the over sold.
They sell 100,000,000 for $1 then short 300,000,000 for $1 but no one know about it. Then when they make the big bucks, they eventually change the data to show the true float (sometimes they never change the data) but the market cap data shows the TRUE issued and float.
Since the shorts know they will be covered soon, everyone sells the shares high with the protection more will come their way to cover the oversold. THEN the price starts to drop.
I put some money in MMNFF (MEDMEN) they are real and operational and with more markets opening up and them cutting off assets that are not doing well. I have a good feeling about that ticker.
They do have unlimited authorized so that's not good and they are in debt also not good but they make money and are cutting the fat (I think) and at this price I am using some short profits so either way its less risk for us. Keep in mind that one factor is, you can buy products from Med Men and that is one key part to investing.
Most pump and dump scams that are in the marijuana space have investors believe that if they legalize marijuana in all states the stock will rise. That is not correct because those operations do not exist so they cant expand on what they don’t have, yet people think its going to help when all they do is sell more shares.
