Replies to post #1804 on Hunt Gold Corporation (HGLC)

[dweeb79]

Isn't the purpose of the buyback to remove the problems that R/S causes?

[bobbybdb]

jbjd, Every R/S always adjust the PPS to reflect the share decrease. If the shares are decreased 2999 for every 3000 then the PPS must be adjusted because of less shares outstanding.
So the $3.50 was the actual adjusted PPS from the PPS pre split.( Divide the 1:3000 but multiply the PPS X 3000)

Ok that being said, you would ask why didn't the PPS hold at $3.50 (post split) if the PPS was stable before the adjustment?

There is one MAJOR reason, which is the SHORTERS, they hang on the wire like vultures looking for stocks to R/S, then they short the bejesus out of what they find.

This rapid decline in PPS post split, IMO was mostly due to SHORTERS.

So where does all that leave us today,
remember that shorters sell shares and receive funds up front, hoping that their action will drive the PPS down, well in the case of HGLC they succeeded.

Now they sit there with $3.50 in their pockets, and for every up tick now their profit erodes, in other words to protect their gains they must COVER their short. When they do this stock will explode.
So in addition to the buyback, and whatever else that is going on, don't forget the shorters are now here wanting shares to save their pocketed $3.50.

GLTA