Replies to post #127822 on NanoViricides Inc (NNVC)

[Rawnoc]

I speak from experience -- experience that is easy to duplicate.

My advice -- don't take my word for it or blindly listen to some other dude down 80% on his stock.

Three options:

1. Walk into a competent brokerage house with that plan printed out. Be prepared to hear them chuckle but they will be nice.

2. Do the same thing only with any college professor in the finance department.

3. Do some googling and see for yourself how this stuff works. See if exactly what I said it was happens every time or see if I'm wrong and there are counter examples. The closest counter example I can think of would be Warren Buffett's USG which is helped execute a rights offering (similar to warrant dividend only a far more helpful idea than a worthless warrant that offers zero chance of help for 5 years). In that case there was no short squeeze and no, shorts weren't in trouble. The company did great later when the business turned around but not before. Shorts simply were short the rights offering as well just like they were short the stock.

[Rawnoc]

Well if I were him I would be too embarrassed and cowardly to reveal myself too after that senile plan.

Please, enlighten me, what is it about a $6.05 five-year warrant on a $1.20 stock that sounds even remotely like an idea anybody could like after doing any kind of digging.

When you do your digging, confirm the following:

1. The company receives ZERO proceeds from warrants until they are exercised.

2. There is less incentive for anybody to exercise them until the stock price is comfortably above the strike price.

3. If and once above the strike price, the warrants (publicly traded) will likely have a premium giving once again less incentive for anybody to exercise them when they can get more money by selling them in the open market.

4. Publicly traded warrants of any company priced that high with a stock price this low are practically worthless. There are literally hundreds of examples you can dig up throughout recent history and currently trading to confirm for yourself.

5. Given all this, why would the mythical short cabal give a shit other then use it as yet another red flag that the company's 3 biggest shareholders are senile morons?

[Its_lose_not_loose]

I kind of like the idea after a bit of initial digging - admittedly need to do some follow-ups on it though over the next few weeks.

This is a sincere question as I honestly don't understand the whole warrant scheme. There's been many posts here poo-pooing the idea and they have been quite detailed as to why it wouldn't work.

Have you done any further digging and if so, do you think the idea has merit?