Post by
GhostmyDck on Apr 24, 2020 12:35pm
Duped and Scooped
You've heard of pump and dumps but this isn't that. Sure it was pumped and the SP dropped but insiders didn't dump (at least that much). This is a dupe and scoop by management. They duped retail investors into buying for the last year from their social media exploits to their constant pumping at conventions and presentations. Then they pull the rug out under them all and suppress the share price for an extended period of time (struggling to break past 25 cents/share even). This enables them to scoop up the shares for cheap. Not in the open market but in dark pools. Then when they have enough shares between management and Gotham they will introduce the buyout offer to existing shareholders and scoop up the rest of the shares for cheap, all the while touting some hefty premium that they artificially created. Shareholders will bbtch and complain but nothing they can do as the people who want this company on the cheap already have enough votes to enact their plan. Could shareholders see some gains? Possibly some on the current SP but for anyone who bought in pre-default they will be left with a small loss at best, but most likely some very large losses. Sad, but this only happens because the government regulations make these companies desperate for capital and unable to list on any real exchange or get any real type of debt. Even though it's cannabis so the operations are heavily regulated, the financial side of the business has very little regulations and oversight. Shareholders need to learn from this. Be very skeptical when investing in companies on crappy exchanges. The first glimmer of a red flag and you should probably bail. Also, if you are an American you need to get your voice out there. Enough outcry from the populace for regulations and the government might actually do something. Then these types of businesses will become more legit and there will be options for people to invest in these companies once they are on real exchanges and have some kind of regulatory support from the government instead of the feds constantly turning a blind eye to the whole cannabis movement and still deeming it on par with heroin and the like.
Comment by
TeamEddie on Apr 26, 2020 3:37pm
Some clown on twitter was used by someone who got them to write an article so they could sell shares they bought and you think it is real most lilely deepdive and bettingbruiser working together