OTCQX:SREMF - Post by User
Post by
MAGICLENSon Oct 13, 2001 11:09am
1242 Views
Post# 4285938
Motives:IQ2
Motives:IQ2
To Traders:
Previous news release:
"...Subsequent to quarter end the Company concluded a private placement of 588,235 Units at $1.70 per unit for total proceeds of $1 million. Each Unit consists of one common share and one share purchase warrant at $2.04. The Company had a cash balance at the end of the quarter of $3.6 million and accounts payable of $3.8 million..."
What's driving up the price of CLQ, when they have NEGATIVE cash balance?
CLQ declined to release independently this announcement which was put at the end of a recent release.
Without knowing the share price action at the 1-2 dollar range, I suspect that IQ2 had connections through separate independent accounts to short in the low 2.00 dollar range while holding 2 dollar warrants. Most of us did not know this was happening as no release at the time was given, as clq Knew the result from the last financing at 3.75.
A subsequent news release by joining with CLQ would involve covering short at a profit to the expense of CLQ retail investors substantially below 2.00, while driving UP the price, attracting CLQ longs to average down with the media release. On the short term CLQ investors may "win", but watch out for the drip down. This puts a ceiling of 2 bucks for CLQ, unless the spec about CHINA is happening.
PURE price manipulation. The intraday trade is ideal for CLQ.