RE: New article on TBP25 Sep 2018 05:24
Wisha, et al. Thanks for the supportive comments.
The Market Makers will try and keep the price rises low in the next few days so as to not have to pay too much for shares whilst they are building their long position. But once the last of the warrants is gone then the dam will burst.
What shocked me slightly was quite just how much money they might be able to make on this.
Should this annoy us ? Who is losing out ? Should we be unhappy that they have at last aligned their interests with ours.
Well warrant holders are being shafted somewhat by not being able to get full market value by being forced to sell into the hands of the market makers and not a fair market. In principle if this was a mega-share like Apple then there would be a secondary market for warrants which would give them an alternative and consequently fairer valuation for pre-exercised warrants (which can be bought and sold as their own financial instrument).
Anyone else who is day trading over the next few days may not get the return that they should really be expecting - once the spread is knocked off then maybe a percent or two rather than the 5 or 6% they could get on a better day. One's heart does not exactly bleed for investors with such an uninformed approach.
Those investors who bought in on fundamental grounds in the past, but who have sold before the end of this week - they will have obtained unfair valuations and may even have lost money as a result of timing of their entry and exit points. They too will have suffered as a result of the repeated retracements that the Market Makers have been able to induce following each of the warrant drops since June. If they sold because of factors outside of their control then they deserve sympathy, if not then no tears should be shed.
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