Well you should go back to Avi and ask him if he was shorting sub penny stocks. I will guarantee you he was not. That is not happening here with one possible exception theoretically, which is probably what your friend Avi was talking about and what I have talked about. Shorting against the box. It has become more popular because you no longer see some of the ridiculous discounts...due to some of the SEC actions and lawsuits about said toxic loan providers being deemed underwriters without registration. But they will now short a stock right before they take the conversion and cover with the converted shares. It is almost risk free.
But that does not appear to be happening here either because it DOES generate FTD's. If you want an example of where it is absolutely happening look at MULN over the last 2-3 months. It is a threshold security as a result.
But the amount of stock that has hit the market goes way beyond whatever debt conversion is occurring.
And while we can debate who is "in the know" and at what level...many of them will be alot more "aware" or informed than we are.
And even if that is not the case...the most favorable interpretation is that they simply have no confidence in the stock and are essentially dumping it the moment they get it.
That isn't very good either.
1) Do I own stock?
Answer: No. I don’t invest in penny stocks.
2) Why am I here?
Answer: I like debating things that I have a 95% chance of being right about.
3) Am I a paid basher?
Answer: Wait…what? You can get paid for this?
AI
