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Ok nick. fair enough, but answer me this. who holds the other 42% of shares? it is not PIs we only hold around 8%
Sure perhaps Anavio will be paid off for their bonds if it goes bust as a 2nd tier creditor after SL is paid off.
They are still going to lose the value of their shares as under your theory no one will want to buy those shares.
Under my theory even if they do dilute to 20 billion shares to hold almost all the shares to gain from a sale, and the company sells for £200 million or over, that still represents a sp of 1p+ which is not bad from current levels.
Then its game over for them too, they still hold 24.5% Anavio and 24.5% the other single entity, plus who knows which other II since they didn't declare. Large shareholder group only hold 8% and remaining PIs even less.
So some IIs stand to lose a few million if they let it go bust. Sure maybe they made a few million too, but why lose when they can make even more?
That's why I don't think its going bust. I bet you its going to magically turn around after SL is paid off and production will improve a lot. Or a JV may even come back to buy it out.
I believe this is the game Anavio and other dodgy 'investment' funds are playing, they want to hold a big slice of the cake because they expect a buy out offer for a few 100 million.
Https://www.youtube.com/watch?v=JtQ2hIIoBfA
fast forward to minute 7:24
fast forward to 7.24p :)
I disagree. Only my experience, the AIM game is driven by news, leaks and MM and/or company manipulation.
Sentiment can drive a AIM stock up only so much, then it collapses back. But news really moves them up or down, and news you just can’t predict.
Sometimes you can gamble to get in on a rise before news in case its leaky, but then you can also be spiked by ‘sell on the news’ dumps.
Also you get stocks which get manipulated down or up by MMs, big players, or sometimes the company itself is complicit.
I have even seen them playing about with RNSs and regulators do nothing. One stock for example. One day RNS lands leaving out drill results without explanation, price dumps. Only two days later a new RNS lands with results which are positive, price rockets.
So in summary its a big player game, usually to fleece the PIs. If you are lucky or smart enough to guess at their games you can make a little bit. But usually PIs lose.
I started to have a look at other NASDAQ stocks which have been going mental recently.
For example RVSN and MINM, I checked them out on Fintel, and its a similar story to MDAI. Every day short volume is roughly 50% of all shares traded.
And yet, their share price managed to break free.
So I am hoping MDAI can do the same. Just need more volume. The shorts can stay clinging on and short 50% of all trades but looks like that won't stop the share price going up.