More than once in this little corner of th world, i will be making reference to a stock that has been on the :obb, nasd:sc, nasd:nm, amex, and back to nasd:obb–the penny stock boards…sometimes called "pinks" ahthough pink sheets refers to a different marketing system now, thankfully, lost to history..i hope.
As an example of what the prudent speculator should examine while doing the dd (due diligence) to manufacture a chart, warrnats serve as an example of fundamental analysis that will need be considered.
A warrant is the right to buy from the treasury (the treasury of the corp "warrants" or promises that the total authorised includes an allowance for future stick not issued) a warrant for some large discount, that becomes a coupon to rtade for a share of stock under certain conditions.
Thus, corp yuck:nasd:obb whose common traddes at 7/8, can sell warrants @ let’s say 3/16, which are tradable 1:1 for a share of common >>>if<<< the average trading price of yuck is at or above 1 1/2 for 30 days before 122112….december 21, 2012…the winter solstice and end of the world.
to make the warrants attractive, an mm will keep the ticker as close to that level as he ca get it. the warrants get sold, te treasury takes the money, and the comoany then watches the mm sell off, shorting into the raly he built, collecting his fees for moving the warrant, whle the corp screams about evl manipulators..while waknig away with free cash.
here’s a chart:
http://finance.yahoo.com/q/bc?s=BTIM.OB&t=5d&l=on&z=m&q=l&c=
here’s another…lol..
http://finance.yahoo.com/q/bc?s=BTIMW.OB&t=5d&l=on&z=m&q=l&c=
whoops…
so…what is the soruce of this week long rally?
fundamentals?
a news release?
or…..could it be…. mm games?
or do they all work together?
the prudent speculator wants to know.
before he hits the trigger. he gets to know by doing is dd well in advance, and never being done with it. only then do the charts become tea leaves…
Posted under business
This post was written by admin on October 27, 2008
