GREY:ALEAF - Post by User
Comment by
Toweringmarson Jul 23, 2020 9:59am
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Post# 31306915
RE:good lesson
RE:good lesson Dawg, what are you even saying. They hold warrants, they can short the warrants buy you cant borrow against AH.T and cover with AH.WT. Its just not how it works. And your theory on them striking the warrants to cover at 80 cents would mean they're buying the 80 cent warrants adding significant cash to our already funded pocketbooks. Sure its plausible that when they cover with the 80 cent warrants the price can be kniocked back down, but they wont want to do so and knock it back below 80 cents or risk losing on whatever ammount goes lower than 80 cents.
Show me one microcap that doesnt offer warrants with their offerings. Just one. Its extremely commonplace. And in the mining sector they offer flow through units and warrants as well that bear no tax burden to the holder and is extracted from the companys exploration spend tax deductions. Its even more crippling than a common share or common warrant.
Warrants are a necessary evil and if you never reach strike price they end up expiring. Which is fine as well. As seen with the emblem legacy warrants.
Its all common practice and has little to no bearing on shorting strategies, unless of course the stock goes to $1.50 in no time and they cannot acellerate the strike clause for a 10 day window. Then hypothetically they can cover all the way down to 80 cents, but that would mean they have to buy the 80 cent warrant and turn it into shares. And hope that those shares are immediatly free trading, and dont hold a 4 month hold period.
Any which way you cut the cheese, it all means a major jump in shareprice. And with what you know (as seen in your previous posts) the company is about to make, you tell me if your worried some clowns are going to short it pre earnings as the fuse is lit. Too risky. Too silly. Too foolish. Whats more plausible is this thing gaps up hard post earnings into the 3 - $4 range and consolodates around there for awhile before its next leg up.
One of the big catalysts I think will be all of the hype and news around the outdoor grow when its announced. The entire sector will be talking about it. Mark my words. THAN we'll have the exposure we need and deserve. And all for free.
All in all, if we manage to pull this off, we'll be paying off our homes and vehicles (pending on the size of your position) but its an easy 5 - 10 bagger from here. WISH I had more dry powder.
bobus99 wrote: anyone invested in this should understand a good lesson of stock market if you see "investor" offering and warrant togheter with a stock that have no option trading its doomed to go down to 0. its bad management the only thing they can do to reverse this is to buy back stock at exact warrant price using lawsuit money until warrant expired until that warrant holder or the "investor" will just short and using the warrant as a shield to cover up in case it goes wrong