RE:Share consolidation is not a certaintyHey No name.
I agree that it will be a good scare to these shorts, even if the consolidation doesn't occur. This share became a laughing stock after the Bomber did a Share Issue of 180M shares, in 2018 for $600M at $3.45/S, to raise capital. In 2019, one of those 4 Institutions the TD, that bought 40M of those shares, sold those shares to Goldman Sacks, for $4.70 range. The price was holding for $4.70 for some time. But when the sale to Goldman from TD closed, the share price tumbled in about 2 to 3 months later. That's when the real shorting started. Today we're seeing shorting from every direction.
The company is strong now financially. But in 2019 when all the shorting was going on, it was a mess financially. Yes the Bomber did announce that they would do a share consolidation in the end of 2017 and yes the share price started to skyrocket from $2 up to $4 (share issue time) to $5 by the end of 2019.
I for one welcome this announcement, because as you say, the Petty shorts/Manipulators and cheap day trader groups manipulating this with Spoofing/Naked shorting will think twice about shorting this stock. I applaud the Bomber Management for announcing this. 1. We're dealing with a profitable company now. 2. I'm in the positive teritory, and will probably continue to grow profits if consolidation occurs. 3. It may put an end to these parasites doing this needless shorting especially recently. Whose heard of a company doing great financially, like the Bomber, and then losing half its market value from the Shorters in 3 months??? That has to stop. If this is the only solution? Then I'm for it this time. GL to the Board of Directors for this announcement. Cheers 859
NoNameAtAll wrote: I noticed in reading the press release that the resolution will give the board authority to effect the share consolidation.
I'm wondering if this will have an effect on the naked shorting that has been an issue for this stock. If the resolution passes, until declared by the board, the board will have authority to effect the consolidation at any time for up to a year. So, nobody will know when or if it will happen until announced by the board.
This is not the first time this has happened. Immediately after the first time BBD share price went below $1 a shareholders resolution was passed allowing the board to trigger a consolidation at any point in the next year. The board did not trigger it, but the price of the shares went back up considerably. That was when the shares took a run up to over $5 and the company was much more of a basket case then compared to now.
When I think about the shorting rules, as I know the, the big guys need to have a legitimate expectation that they can borrow shares in order to cover their short. Well, if there is a consolidation, everyone will need to pass in their shares in exchange for the consolidated shares. I think that will mean all shorts will need to make sure their shorts are covered through the consolidation.
Perhaps that caused more cautious actions the last time BBD did this and perhaps it will happen again. For those that have been around for a few years know that while BBD shareholders approved the consolidation last time, they didn't pull the trigger and do it. I wonder if that will happen again this time.
Would like to know if anyone else has given this any thought.