Thanks for the link - interesting. If I read it correctly, your theory is that a warrant call creates selling pressure into a particular type of short selling strategy that will adversely affect the price at least in the short term (until the call is completed) - and the analysis you linked me to does make some sense (as to how a call may affect the price of the underlying securities). But collapse ATG? I thought companies collapse because they don't make money, not because the stock price fluctuates. Which creates trading opportunities, to be sure, but doesn't fundamentally affect the company except under the most extreme circumstances, true?
When you are investing for the long term, stock price fluctuations are like people getting on and off a bus - as long as the bus is mechanically sound, has fuel and has a driver, the fact that some of the riders are happy and some are sad, and some are late and others are early, that for some the fare is a buck and for others the fare is 3 bucks, and that some got on here and some got on there, really doesn't matter. Do you think I am wrong in that view or is it just a matter of approach? |
