Post by
lifegoeson on Jul 23, 2021 10:09am
Shorts - Chucker
Chucker, from my experience, this is a game the warrant and option holders play with these penny resource stocks. First a promotion occurs and the price runs up, as in this case, GGC financed at higher prices. Then they begin to short, knowing fully they can cover at anytime. It can be brutal for the little guy with no leverage, they just continue to load the sell side since to short there needs to be an uptick, this then scares people into selling and down goes the price like yesterday (and since the PP some time ago). Guess what, they then cover below from whatever short they managed to capture and then start again, that is why there is generally so many shares that trade. The farther they can push the price down like yesterday, the more money they make. Then suddenly they have all covered when they know news is coming and they get on the bid. The good part is everyone wins when the price runs on good news. So in the case of GGC, with money raised at higher prices, they know the support from the big guys will be there to run the price. It is a game played all the time, for little shareholders like us without warrants or options, we can't play that game because for us to short it could be diasterous with a halt and higher price after the halt, thus trapping us. Only the warrant and options holders win in the short term I am afraid, so if you believe, you have to hold during this very, very difficult time. The best strategy is to buy at lower prices and average down if you truely believe. I bought more. By the way, they just extended warrants for another year today, go figure, they can't loose....!!!!!
Comment by
chucker6 on Jul 23, 2021 12:24pm
yes I was ignorant to think this didn't happen in penny stocks but your 100 % right. I did buy another 2500 shares yesterday. The one thing is that insiders were buying up .60 just before it started coming down in price. I'm waiting gl.