RE:RE:RE:RE:Impressive supportRaptor7 wrote:
First of all, let me start by saying I'm not convinced that this has really happened. This would be pretty unique if some bigwig's investment strategies were being played out on the bullboards.
But giving benefit to the doubt, let's again assume there is some truth to this. You ask why would they exercise their warrants that don't expire for quite some time?
Good question. But let me pose a question to you. Let's say this guy is quite happy making more than a double on this investment in just 3 or 4 months (TMX reports shares were sold at an average price of 13.56 pennies). What might you think if he simply sold these shares and did so even before results came out? I think you might be kind of perturbed.
But let's spin it in a way that conveys the message he was only anxious to exercise warrants but felt compelled to keep his holdings under a 20% threshold which apparently triggers some kind of inconveniences? It kind of softens the blow, doesn't it. It doesn't matter that he is exercising warrants at a nice discount to prevailing prices and it doesn't matter that he has already locked in enough gains to complete this transaction with somebody else's money. It just matters that he has exercised these warrants and in the eyes of some it makes him look like a hero. JUST BRILLIANT!
Presumably, no big investors like Goodman & McEwen would exercise 14.5 million warrants @$0.10 on a penny stock trading 2 or 3 cents above the exercise price. As the jokes goes, who are these "dumbass" insiders, who together with Management, will end up owning about 50% of the 102 million outstanding "diluted" shares sell their stock to?? Try dumping that load of stock onto retail investors. Right now, McEwen Mining or Bob McEwen hasn't sold anything, otherwise they would to file an insider report. McEwen bought about 400,000 shares in the open mkt. @ 12.5 cents a few months earlier. I think the bull and the bear has each made their case, and we shall see who is right.