GREY:MDCGF - Post by User
Post by
oilandgaswellson Dec 15, 2009 7:55am
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Post# 16587532
MDG Monday sell-off
MDG Monday sell-off The drop in the SP yesterday could be the result of dozens of factors. The volume yesterday was below the average trading volume of the stock. To characterize it as "high volume" is a stretch. Consider this...
There are still may warrants @.25 that have yet to be exercised. What you saw yesterday could well have been a fund who participated in the March 2008 financing exercising warrants and selling stock to cover the purchase. Many of these types of investors may need to lock in profits/losses prior to the end of the year for tax reasons. Knowing it takes 6-10 business days for a warrant exercise to close ( exercise on the market, 3 day settlement, transfer agent request certs from issurer, certs delivered to stockholder account) If you have 1,000,000 warrants and you want to hold your "profit" in stock, you will need to sell about 375,000 shares to cover your costs and not be out of pocket.
This process crystalizes a gain for tax pruposes.
The way the stock traded would indicate to me something like that was going on IMHO.
GLTA