GREY:PGDIF - Post by User
Post by
BabyE88on May 04, 2014 4:47pm
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Post# 22522851
Trading pattern
Trading pattern
There are two folds here.
Buyers: Insiders and savvy ones want to a good deal and offer low bids. They assume the sellers are clueless until a surprise mega bid from majors.
Sellers: Main short sellers and employees who cashed out options to suppress the share prices. Their intention is crash the stock as low as they can to earn the spread between selling price and covered price.
Catalyst: focus on short cash flows.
-The company may film a drama on the youtube to demonstrate the event of CH6 billions of years ago; this may yield some cash inflow via "paid-per-view" to use money buy back stocks to reduce the influence of sellers. Then, if it can draw big audiences, the possible venture with Hollywood will change the landscape for PGD as it is very educational documentary.
-Selling those useless drill samples on EBAY "Billion Years Fancy Diamond Rock" to create short term cash flow.
-Reduce operating expenses by paying hourly compensation with share based compensation. All cash expenses should be related to non-labor cost.
-The help from Royalty Company like Royal and Franco is necessary to squeeze out the negative influence of Sellers. Borrow a $70 million loan from them to purchase 167 million shares @ $0.42 if sellers are willing to play the shitty game longer.
Conclusion: The management should be more firmly to design a plan to enhance “shareholder value”. Find any opportunity to reduce share dilution. Let long term ones benefit.