Excellent post!
kron7777
Friday, February 01, 2013 9:06:25 PM
Re: buffalop51 post# 4547
Post # of 8042
So you are saying that DMRJ funded the company for the last 4 years perfectly knowing that their only chance to recoup their investment is the TSA approval. Which was not guaranteed by any means. And after everything worked and the approval came - they would start dumping?
What about the debt convertible at $1.09? Are you saying they are selling shares at $1.22 making 13 cents profit? Was that thier strategy to risk $40 mln to make 10% profit? Really?
And the reason for dumping? Because the company didn't get $50 mln contract the next day after the approval? Are you serious? It took TSA 4 weeks to collect all the signatures to finalize the approval, do you really think UPS or FEDEX would sign a multi-million dollar contract the next day they got a phone call about the approval?
Even if that is the case and DMRJ decided to lighten up, institutions don't sell into weakness. They don't dump millions of shares causing everyone else to sell. If they want to sell millions of shares, they engineer an uptrend. They issue buy recommendations, they have people writing articles about bright future, and most importantly they make sure the stock goes up. Maybe it is not obvious for you, but when people see a stock that goes up - they start thinking this is because something good is going to happen and they want to buy such stock and then to buy more. Thus providing the seller with an opportunity to sell millions of shares. So instead of dumping the shares in the last minutes of trading, they would buy shares so the stock closes up and there are new buyers the next day.
And the opposite is true. When the stock is going down - people start thinking that something is wrong with the company and are inclined to sell. Simply because the stock goes down.
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