FrankSpeech Network Inc (FSBN)

[big_money_insiders]

Great question, Goldrush !

This is where is gets complicated. Companies like Golden Gate can hedge their position. Say they perform a strategy similiar to a 'Straddle' in Options trading.

Simplified Example: GG has some shares long and does not know whether or not CC will happen. They can hedge with a short position until news hits. At this time, they will get rid of one of the positions. Remember, the lower it falls, the more shares GG can convert. If it falls, they will also make money on the short along with converting new shares with an 18 % profit built in. It protects the built in profit. The formulas are complicated. These companies are very good at controlling a price.

For the most part, they do not anticipate news. They just sell shares at any price because they can only hold 9.9 % at any given time. They are already in the money, so dumping at any price gives a quick profit.

We want them out of the picture as soon as possible.