GREY:RVVQF - Post by User
Post by
Shellydcon Jul 19, 2019 10:15am
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Post# 29939379
Added Risk
Added Risk Ravenquest and Wayland are two companies with a fairly similar pattern. In fact, Ravenquests profitability is tied to Wayland for the duration of this year with the 8000kg deal. Wayland has been dragged through the mud with their debenture (the details were much less favaourable than ours). The stock price has been depressed heavily. There is speculation about the credibility of the CEO, their current financials are late which has led to the company being halted/suspended.
What makes it interested is the fact that the Hedge fund MMCAP is tied to both companies. There are strategies where they short the stock and cover their shorts with the convertible. With this stock it isn't logical because the conversion price is much higher than the stock. However, the similarities in performance is eerily similar. Since both companies performed their debentures, the price has been reduced significantly. Only difference now is that both companies are "expected" to become full time producers for the first time.
Now we need to decide what is actually occuring, are they continuing to short the stock and depress the price.
OR
Have they already depressed they price of the stock, think of this as a long play, have lined their pockets with shares as a hedge and expect profitability to rebound the shares.