“The going concern statement is already taken in
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Posted On: 08/26/2018 9:43:18 PM
“The going concern statement is already taken in to factor when an Investor buys this type of stock“
You say it’s “already known” and “no big deal,” if that was the case, all of the entities DECN taps for cash would be happy to get common stock, and not preferred stock, or debt, or warrants. The reason for this is that they will own the company and assets if DECN is forced into bankruptcy as debt holders and possibly preferred holders. Common shareholders will get kicked to the curb with less than a “thank you” for all their patience. It’s also not always up to the company (aka “voluntary petition”) whether or not to file for bankruptcy... creditors could make the case that the company isn’t a viable one, and needs to be reorganized while they can still get something for the credit they’ve extended.
Warrant holders will short the stock ASAP so none of this really affects them... if DECN goes bankrupt their shorts do extremely well. The Market Makers you see shorting here have decades of experience and have made literally billions of dollars doing this. Maybe they’re wrong this time? Next point of interest will likely be what form the capital raise will take; if warrants, more shorting and SP goes lower. If convertible preferred probably the same but to a lesser extent perhaps. If common stock outright, then whoever is subscribing is likely going long and believes in the future of DECN.
“Thanks for proving my point.“
You say it’s “already known” and “no big deal,” if that was the case, all of the entities DECN taps for cash would be happy to get common stock, and not preferred stock, or debt, or warrants. The reason for this is that they will own the company and assets if DECN is forced into bankruptcy as debt holders and possibly preferred holders. Common shareholders will get kicked to the curb with less than a “thank you” for all their patience. It’s also not always up to the company (aka “voluntary petition”) whether or not to file for bankruptcy... creditors could make the case that the company isn’t a viable one, and needs to be reorganized while they can still get something for the credit they’ve extended.
Warrant holders will short the stock ASAP so none of this really affects them... if DECN goes bankrupt their shorts do extremely well. The Market Makers you see shorting here have decades of experience and have made literally billions of dollars doing this. Maybe they’re wrong this time? Next point of interest will likely be what form the capital raise will take; if warrants, more shorting and SP goes lower. If convertible preferred probably the same but to a lesser extent perhaps. If common stock outright, then whoever is subscribing is likely going long and believes in the future of DECN.
“Thanks for proving my point.“
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(1)Decision Diagnostics Corp (DECN) Stock Research Links
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