GREY:VITFF - Post by User
Comment by
MVargason Aug 17, 2017 3:18pm
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Post# 26593323
RE:Short players
RE:Short playersPrice suppression is obvious, but I don't think it is for the purpose of stealing shares from frightened retailer sellers.
Consider this:
On May 23 VIT closed at 70 cents. Since then we have had some encouraging, but not spectacular, drill results
BNP Paridas has committed to providing the entire $US 220 million financing themselves rather than arranging financing from a syndicate of banks.
Actual construction start began this week.
Gold has increased from $1260 on May 23 to $1285 today.
Based on all of this, the share price should be higher than the May 23 share price, but the share price has fallen to an illogical 50 cents. This can only be price suppression by an "Annonymous" seller who is continuing to pound the share price relentlessly day after day. Since May 23, "Anonymous" has net sales of more than 7.5 million shares. No other House has net sales of more than 400,000. Anonymous has net sales of 4 million in the last month alone. Today they hit the 51 cent bid with a 122,000 share sale to drop the price to 50 cents.
Why the price suppression?
The 2 more logical reasons are 1) to lower the price in advance of a takeover offer. At a 70 cent share price an offer of $1.00 might be deemed to be insufficent by many retail shareholders, but those same fatigued shareholders might settle for 75 cents today. If Sun Valley is willing to part with a small percentage of their shares for 52 cents, they might part with all at 75 cents.
or 2) the price suppresion is in advance of a large private placement needed for the $40 million financing shortfall. It makes a lot of sense to short to stock all the way down to 50 cents by selling a 7 or 8 million shares if you can get 80 or 100 million shares in a 50 cent PP. You can use a portion of these shares to cover your (naked) short position. Much better than participating in a 70-cent PP.
Was it a coincidence that the most informed poster on this Board, ChilledJames, sold all of his shares at 70 cents, but posted that he intended to buy them all back by August 1? Perhaps in a PP?
The management of VIT aren't helping. There should have been a press release annoucing the major milestone of Start of Construction. But if the share price remains depressed until the next major granting of shock options, they stand to make a great deal of more money on those new options.