Hi, Steve, I have a question for you about the methods used by MMs (professionals) during a warrant call. Specifically, I am talking about BNGO and BNGOW. The company called the warrants on Nov 13, with the last day to convert on Dec 22nd. The strike price of warrants is $5. The stock price before conversion was in $9 territory, now is is more like 5 11/16. There were two panic selling days, during which the main price drop happened. Lately (last two days) I saw the pattern when the warrant goes at the bid (MMs are buying), and the shares go at the ask (MMs are selling). Today this pattern is not there any more. (Don't trust my observations because I have only DATEK real time simple quote, and this sort of info can be derived by only watching the screen constantly and pushing the update button, which is not always possible).
So, what do you think MMs are doing with this microcaps, and do they have any interest to drive the stock below the strike price (which may drive the company out of existence, because this call has to bring $17mil to the books, and they have only 2mil now, and they have a lot of potential M&A deals waiting for this money to come.)
Thanks,
Musya. |
