RE:RE:RE:RE:RE:Short report TH They only need to buy in the open market if they are naked shorts..I suspect they are shorts who had suscribed to the Units under the prosoectus and shorted before Closing in expectation that they could either cover when they received the Units or buy at a lower price on the open market .Thus zero risk
scarlet1967 wrote: Well whoever they are they need to cover , the presentation yesterday was great I just hope the company would reach out to the broader market rather than only institutional investors.
Spartrap wrote: Well since then we learned the underwritters could place all the overallotment at the intended price, regardless of the drop, and the company issued the shares for it, so no, sorry, no big short to cover on the market from the bankers *shrug*
scarlet1967 wrote: I had that discussion with Spartrap on Stocktwits and below was his idea which is another way to lol at it.
"
Overallotment will simply be sold short to clients while the bankers cover on the open market at below offering price. Which also happens to stabilize the price back up again. They have 2,175,000 shares of flexibility to do so (15% of offering)"
jeffm34 wrote: Did the new investors short the stock from $4.20 down to $3.50 during the run up knowing they had shares coming at $3.50 to cover?