GREY:WSLFF - Post by User
Comment by
forfunon Feb 14, 2020 10:55am
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Post# 30691448
RE:Zero respect
RE:Zero respectI don't have a lot of evidence of this but there's a certain situation where it may benefit Execs and inside holders to have the price drop while they silently acquire those shares on the cheap and further improve their holding position.
With shares for insiders being "free" (granted as bonuses, compensation, etc), and with WeGrow coming in and getting transferred a whack of shares at the equivalent of 5 cents/each their cost, there's little real incentive to keep the price afloat.
On a similar note, if they burn through their new cash infusion quickly, I wonder if another "private" funding deal is in the works. If it is again Insiders of WeGrow working on another funding deal, then there's further benefit for them to let the share price tank as they'll get far more shares for the same amount of money. That money would then go back into the company and potentially funnel back to them anyways. From there, it's just using a wait and see approach to try and make the company profitable (whatever that may look like down the road)... In typical fashion, the share price may then slowly creep back up a few cents (double??) and everyone involved (except current public shareholders) will make out like bandits.
Again, the above is just a pie in the sky thought and i'm not making any assumptions, but it seems like the above trend happens fairly often in these small market, but publicly traded companies. I've seen this happen multiple times on the Life Sciences side of publicly traded companies. Millions of shares are handed out while a company slides from 20 cents to 4 or 5 cents a share, and then miraculously the company shows "profit" back up to that 18-20 cent mark. Bagholders still lose thousands (millions?) but the Insiders make off like bandits.