Nice to see you here again. Wondering why you want to keep their heels to the fire if you haven't taken a position yet, one way or another. I don't doubt you. I am just curious.
I have a general question for people who know the way trading works. It has seemed to me that Zonagen was keeping the price up when it should have otherwise dropped, by buying back shares. It seems that they bought almost a million shares (is that right???) the last quarter, and looking at the way the stock trades, it's very thin. So if they come in and buy near the end of the trading day, they can bring up the price of the stock a lot at the most important time of day, without buying many shares. Say they buy 500 to 1000 shares but at higher levels than it's been trading for most of the day. If this is possible, then couldn't they do this forever, and hold up the stock price themselves using the millions of dollars in capital they have?
This is really still a speculation but it fits with what I've seen about how the stock has been trading and the amount of shares the company has bought. Could they be spending company money to support the stock price, but thereby raising the value of their private holdings? I'd ordinarily expect a company to try to buy LOW, not high. Is there any way to find out the prices they have been paying and the days they bought, to look at this. But whether there is or not, it's probably not illegal, right?
I'm just musing about this, so to speak.
Linda |
