Drano, I know any post not praising IPIX will be viewed as negative/bashing by some here. Companies asking for preferred stock usually are in bad financial shape (so is their stock price), just like individuals asking for title loan usually have bad credit or no money. If the fund manager just goes long in stocks in bad financial shape from the beginning, the MFO will be out of business.

What do title loan companies do to reduce risk and protect their investments? They take your ttile in case you can’t pay back. Likewise, MFOs have their own risk reduction strategy. Let’s say they go long in IPIX from the beginning. What if the stock keeps declining because the deal is off or BTD isn’t granted or P result is bad? My previous post has links to how preferred stock financiers operate to hedge their investments.

Today (and yesterday) is a clear sign (to me) that the MFO is trying to drive the SP down. Alan always claims no one is selling because longs aren’t selling. So who’s selling 1.6M shares near the 52-week low? Don’t get me wrong, I love to see the MFO become one of our largest shareholders, but I don’t think they’ll do that before they reduce their risk. I already said it’s their best interest to see IPIX succeeds because they can make more money.

P.S. There’s also no evidence that they’ll just covert all the shares and hold. Again, ask yourself who’s willing to sell 1.5M shares yesterday and 1.6M shares today near the 52-week low.