RE:Brokers Analyses versus Misconceptions - A PrimerStanley - right on, and even more so when you study in detail the MR 43-101 that NXE put out
One has to be confident in boat loads of speculation going forth for NXE to merit its current market cap. stanley wrote: Lurk & Learns:
The following is my interpretation of how a bot deal appears to work.
Feel free to make your own conclusions:
1. In return for a financing, brokers get rewarded with 1,000,000 warrants to buy stock @ $0.50
2. Take stock trading at $0.70 to peak $2.75, using 200 mln INFERRED lbs
3. Short stock (say at $2.60)
4.Cover at $1.50
5. Make $1,100,000 = ($2.60-$1.50)*1,000,000
6 Pay of warrants $500,000 = (1,000,000 *$0.50)
8 EASY MONEY $600,000 = ($1,100,000 - $500,000)
Making money is easy with the right "horse", you just have to prolong the "honeymoon". There WILL come a time when/after the shorts are covered that what was once needle moving announcements will have no impact. The lament of the FCU board is centered on the ability of brokers (disguised as analysts are allowed to work around the intent of the CIMM NI 43-101).
Since when does/will the announcement of a road, shoulder season drilling, cps 550m deep deserve a bloated market cap? Easy, when there is buckets of money to be made.
BWDIK? Calculate dilution and retracement.
Cheers
Stanley