PART 2
Continuing from my meeting at the ERBB offices ...
I want to keep relaying more info to all of you, but I have to inject a conversation I had with Peter Jacobs about the share structure and price and the shorting going on.
First, David Gwyther is not interested at all in a reverse split or dilution. Any additional shares being issued are debentures and have to be held for a year before conversion. So enough with the dilution BS.
David actually worked for a large security firm/broker years ago and knows the stock market. Peter Jacobs is also quite experienced. They are aware of the stock price daily and are also aware of the impatient short term investors and traders. They have some big long-term investors and wish that there were more medium and long term investors right now. I did remark to David in an email that I had liquidated one MJ stock to go into ERBB but in doing so I lost out on a rise that would have netted me 10,000 dollars or more. He stated "I think you will find that the opportunity in ERBB for medium and long term shareholders is on parity. However, the short term players will soon see that share movement among the MMJ companies is hard to time." Peter told me that a reverse split is only feasible if the stock price is high and the stock can really support it. Otherwise, it makes no sense.
David does things on the up and up. If he has to sell shares, he files the proper forms. A lot of CEOs don't. David has integrity. Recently, he had to sell some shares for a personal matter that I cannot talk about. If you knew the reason, you would do the same. Nothing to worry about.
We also talked about the share price. Peter told me that three hedge funds are shorting ERBB -- NITE, VNDM and BKMM. They don't care at what price they can short at, just that they can incite panic with a price drop. Peter told me that it is illegal for the hedge funds to communicate with each other, so they have to send signals for mutual cooperation. It isn't a myth about small sells that send code. It's real. I saw this yesterday morning with ERBB. if the bid and ask are tight, that's normal trading. When the bid drops too much and on small amounts, that's a short. The shares of ERBB are not that available to the big funds, so they are in need of shares to short. They will incite panic, get the price to drop, then cover. Rinse and repeat every day. Peter told me that to keep the share price up and rising, we need to keep our shares and hit the ask. No doubt, it is always good to have bid support, but it has to be tight. None of this stuff that NITE is doing. The spreads that you see with ERBB sometimes are not tight and we need to keep the share price up so don't sell into the bid! Hold on to those shares, but if you have to sell, then sell at the ask!! NITE will test us today. Watch them.
More info on the way ...
Chessman
