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XXSPOWER

05/18/11 10:01 AM

#49 RE: Vordain #45

Well, basically , instead of registering and selling on the open market , they find accredited investors and they are buying in this case at a higher premium.
Most of the times - like in another case I am familiar with AIS - the price is $1.70 and they issue shares at $1.60 - instant dillution and instant price pressure.
When this 8k came out, it was instant price pop , as it shows the big boys will pay higer priced then the underlying security.

Additionally , the insiders - all their options are at like 15 cents = none have sold - and fundamentals and strategic position is good - it just had price pressure from OBB MM and such.
Anyway , check it out - grab shares on days where the bid and ask are not crazy.