RE:RE:Q3 2023It's quite common actually and has been going on for years. It's how the rich get richer by helping to drive share prices to rediculous heights while selling a story of masive growh potential to get the largely uniformed and easily duped retail investors to pile into a stock in the hopes of getting rich quick. And when the rich think enough retail sheep have arrived they commence what's referred to as "Fleecing the Sheep". The rich walk away with the fleeced sheep's cash and look for another heard (aka; suckers). The company legitimately uses whatever funds are left to try and build the business and issue more shares to more unsuspecting sheep with more narratives of future hopes and dreams of success.
Some companies (almost none) survive the slaughter but some do because a White Knight (the rich guys... often years later) see some hope and swoop in to buy the nearly bankrupt company for pennies on a dollar, but only by first paying out the Bond Holders, Preferred Shareholders, etc. And then, also at his stage, along comes the Law Firm saviour who's going to viciously defend the little guy retail shareholder from the Big Bad Wolf, but actually only really there to scoop whatever little money remains that they can reap in legal fees and just maybe winning a few cents for the common shareholder after months and or years of litigation to legitimize their existence. The whole investment process is quite the scam really. Look at the historic charts for Ballard and Plug Power and their share price highs to the lows they're at today. The short sellers have had a hay day taking advantage of any share price jumps to rake in more profits. Billions of dollars of hard working retail shareholder money vaporized and where's the SEC in all this, in particular when Ballard was over $50 a share and Plug Power near $100 when these company's market cap was beyond rediculous?
Here's a Motley Fool video clip about what's happenning to PLUG Power (PLUG - NYSE) right now.
Why Plug Power Stock Is Crashing (It's Not Good News) | The Motley Fool Here's a company (Plug Power) that's got Amazon as a major customer and seems to be doing just fine and then just about when things look like they're about to finally turn up, PLUG files a 10Q filing warning that they likely don't have enough funds to keep going as a "Going Concern" over the next 12 months. How many retail investors do you think saw this coming? And how many retail investors do you think see jumping into PLUG Power stock now is a good thing because don't you know, Amazon is their largest customer so they'll rescue them, right? Yeah, they'll rescue them alright when they or a subsiduary of Amazon jumps in and takes them out for pennies on the dollar. And so again, the little guy takes all the risk and the rich get richer. Same old same old.
Will the same happen to Ballard as is happening to Plug Power? It's a bit early to tell for sure but be cautious because the vultures are never that far away. I strongly believe that Hydrogen will be what eventually replaces our dependence on fossil fuels but it's going to take a massive find of natural 'White Hydrogen' before the shares of companies like Ballard and Plug Power are worthy of any of my serious investment dollars.
My opinion only, please DYODD.
HB77