OTCPK:FRSAF - Post by User
Comment by
rockport1on Jun 03, 2010 1:05pm
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Post# 17155023
RE: RE: RE: y do I torture myself and buy this, ag
RE: RE: RE: y do I torture myself and buy this, ag@Gregarious I think that PFN do not sell FAU based on share price. They simply want to maintain a certain level of shareholdings. They obviously like to participate in the FAU PP's since this gives them warrants in addition to common shares. However, when they participate in PP's or exercise warrants, they need to sell existing common shares to bring them back to the level of FAU holdings they are comfortable with.
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Since they are insiders (and disclose their trades) with significant holdings, they need volume to sell their shares into without crashing the share price. That is why they sell during favorable news releases that should normally increase share price. They become the sellers that absorb all the buying pressure.
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Perhaps they have sold enough, and therefore we finally get a positive reaction in share price due to the news release as we see today. Let's hope that is the case, since IMO the stock is very undervalued. GLTA, lets hope the share price holds up today.