telephonics, I've often thought that I wished that I understood the company and the product as well as you.
You not only have a thorough grasp of the company, but you read all the filings (something that often only shorts bother to do). So I would say that you are probably one of the best-informed longs around, for this company.
You and I were mostly in complete agreement on all the fundamentals, going into the secondary, yet you were long and I was short. Funny how that happened.
The only real advantage I had going into this was that I knew already that a reverse split is absolute poison for a stock price. There are lots of shortsellers who know that, and play it. It can be a high return because you know in advance that the stock will move big, you know which way, and you know exactly when it will happen. So I played the reverse split with a short position. And I got the gain I expected from that.
Then it looked like I might get a further gain from waiting for the company to fold, but I didn't win that bet. That one didn't go my way, so my reason to be short no longer existed, and I just took the best available way out at the moment I needed to be out, and that was the box with the units. I never planned to box with the warrants ... I just needed to make an immediate decision, which for a short is usually either to cover or to box, and in this case it occured to me that there was a second instrument available when choosing to box.
telephonics, somebody with you knowledge of industry, and your ability to get every bit of information from the filings, would do very well as a shortseller, I think.
FWIW |
