Medicago Inc MDCGF

a plausible but not pleasant scenario

[Jentai]

I do not like the upcoming  but plausible scenario. Keep in mind, that the market is reacting, as usual after a bad decision, very negatively to the last PP changes. The share price of MDG is now 10% below the warrants’  new exercising price of
.43. In order to boost the share price, management  “en grandes pompes” will announce Phase 2 shortly, hoping that the GOOD news will help these PP holders.  If the shares go above
.43, the holders will most likely try to sell their existing shares bought in the PP at
.75 in order to claim a capital loss and use the proceeds  to exercise their warrants at
.43. The danger with this nitwit approach is that the market, over the past year has demonstrated over and over again, that it is not very happy with the management’s tactics. The market, in reaction, may keep the stock under the PP exercising price until the deadline towards the end of November. The biggest problem with Sheldon and his gang is that they are grossly underestimating the level of knowledge  and savvy of the investment community. Keep in mind, I still have 800,000 shares invested in this company and I am very patient. However, Medicago has tremendous potential and it drives me crazy to see the fiscal aspect of it so poorly managed and not very well advised.  Each dropped in the share price has been the result of a poor or not very weel thoughtout decision. Management should hire a professional promoter who knows all the in and out of the market and concentrates their efforts on what they know best: Vaccines.