I'd respond over on InvestorVillage, but my account there was blocked when I dared suggest that ZIOP at $14+ was perhaps just a tad (sic) over valued.....ah well.
Every now and again I have an epiphany, or in more plain language an "aha" moment....and often times its something that happens over and over about the same thing. What I'm talking about is understanding what the markets boil down to at the most essential elements. Why do I forget, causing me to have the same epiphany over and over? Because there is so much noise, so much distraction...so much chatter about peripherial matters.
Anyway here's the post by Aureus, for those wondering who Mr. Potter is...he's the rich guy in the movie "Its a Wonderful Life" who buys up most of the businesses in Bedford Falls during the depression when everyone is scared and selling....everything but the Bailey Building and Loan because George understands basic market principles about buying and selling:
"
Back At The Other Ranch
The armchair financial analysts and investment banker and Financial wizards continue with their din
Its easy to see why shareholders are selling on balance for a long time and potential investors are put off
A simple observation is that during all this time Who Is Buying ? All the large shareholders
Who is selling on balance ? Everybody else
The FDA did their own recent review of BOM to date
Think they see any safety issue ? Think they saw no efficacy and agreed to subject patients
to 2 year old trial without the opportunity for any benefit ? Really ?
Potter is buying, to quote the movie, and wants everybody else to sell. The Bloom deal was set up for the warrants to be stripped and the share price drop The units the large shareholders are still at a profit
Enter the Large Shareholders to save the day , buying up all the shares again and again including the the most recent offering
The loan was extended and there is no line in the sand, just the illusion of one to scare others off
It has been rolled over before and extended as need be will again if necessary
The retail shareholders are mostly an embarrassment.If their maker didnt want them shorn they wouldnt have been made sheep
Baaa !
Potter is laughing you.