REPOST - How Generals make $Billions from battlefield stocks
Aug 22, 2014 12:18:47 GMT -5
mannmade, ashiwi, and 1 more like this
Post by mnholdem on Aug 22, 2014 12:18:47 GMT -5
A battlefield stock is where both camps (short/long traders and investors) are stubbornly holding onto shares, with each side having strong conviction that their position is the correct one.
THE BATTLEFIELD: MannKind Corporation
242,160,000 Shares Float
198,571,200 (Float minus 18% institutional)
-72,584,807 (Short Interest shares, July 31st NASDAQ)
125,986,393 (Remaining Long Interest shares)
Professional Board Bashers & Wall Street Hedge Fund analysts try to shake up shareholders into selling shares instead of holding long term. Based on July 31, 2014 Short Interest data:
If 10% of MNKD longs sell 12,598,639 shares would be available.
If 20% of MNKD longs sell 25,197,278 shares would be available.
Short interests must eventually buy 72,584,807 million shares to return (cover) the shares they borrowed.
- - - - - - - - - -
WHEN THE GENERALS ENTER THE BATTLEFIELD…
For a massive squeeze play strategy to work, the Generals (big block Market Movers who can order by the millions) must strike before share price gets too low. There are two KEYS to this strategy. The first is that expectations must remain that the share price will continue to drop, in order to keep short interest hedge funds and retailers HOLDING for a lower price. The second key is that available shares must be relatively few in number.
The Generals can now position themselves to make $billions off MKND with a few simple steps:
- Wall Street analysts upgrade to STRONG BUY, setting high 1-Yr Targets (i.e. $25) and Wall Street pundits publish MannKind’s re-evaluated worth, advising investors to BUY NOW.
- The generals immediately go in and buy up the remaining float in large blocks at a discounted share price.
Hedge fund managers are the first to realize what is happening. They move to buy back their thousands of borrowed shares, only to discover that the Generals have just bought most of the available shares. As the market reverses short interests buyers are forced into a bidding war, climbing over each other in order to get at whatever shares are available...
- Institutions demand increasingly higher asking prices, totally screwing the hedge funds out of $billions.
Folks, I’ll say it again: You are STUPID if you sell your shares at this time. Remember, MM will strike before the share price gets too low. Where is that price?
It could be weeks away or only days, but when the “Generals” decide it's time, they will pull the trigger and implement their strategy to make $billions, MNKD pps will rocket up to anywhere from the high teens to mid-twenties within ONE or TWO TRADING DAYS.
This is what happened with Volkswagen. I'm convinced this absolutely WILL happen with MannKind.
Good fortune all!
