OTCQX:DMMIF - Post by User
Comment by
baystock1on May 04, 2010 3:02am
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Post# 17059215
RE: keep buying and losing more money
RE: keep buying and losing more money>If they don't have confidence to hold a real share why should you?<
It is just shrewd business to sell out the PP shares and ride the warrants for free. This way they get to play the upside with none of the downside risk except for the brief window between subscribing for the PP and selling it. The freed up capital can then be redeployed in the next PP in another junior stock. If they are lucky they may even get a whole 2 year warrant instead of a half a warrant with a one year term. This kind of practice has been going on for decades with the likes of canacrap and co.