Alexx; It's not written in stone mind you, but some time ago I
did a short interest study of the NAZ, ( was a lot of work )
one of the things I noticed amoung others was that often
shorts showed up after companies issued "restricted"
shares. There is a lot of mixed opinion on why that happens,
leading me to belive there are various reasons.
It is my understanding that as restricted as they are, a window
is left open for the holders of said shares to be allowed
to protect their interest by shorting in a style of aginst the
"box" were the restricted shares can be used to cover future
calls at a small interest rate. Also that the restricted shares
are often issued at some "par value" but in reality are obtained
one way or another at a substanual discount to their par value.
Hence at some point the holders can lock in a profit by shorting
the stock. Mind you it's not written in stone but happens to
often to be ignored.
Both restricted shares and the so called insentive options
many companies issue to insiders and employees seem to have
an adverse effect in the long run to the share holders.
The tons of options that ASND was giving away, IMHO was the
leading cause of her huge fall. I predicted it a long time before
it happened and got my butt chewed out by all the bulls on that
thread. Who I'm now convinced were part of her inner loop.
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I know if you were to give me forward options, and the
price went considerablely above thoes options, I would lock
in my future profit, buy shorting the stock. In the case with
restricted shares it would depend on the discount I got them at,
and far to much is not disclosed, or hidden in a subtle way about
these things, and gives me reservations about companies who use the tatics.
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I did not notice the restricted share thingy with ACTC untill
after I bought in when she was so cheap, but when she broke out
I made an exit on that rally, and hinted strongly on this thread
for others to get out. I don't even know how far thoes R shares
extend out, but I belive they put in a resistance point
at or just above par value.
Jim
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