Here's a little clip from an older post:
Playing the Hedge:
48M bought at .0055 and 26M shorted. On the premise one wanted to hedge and sway a low-floater, this theory came to mind the other day and I thought I would share it in case anyone is interested and/or likes to prepare for "best case/worst case scenarios".
48,000,000 x .0055 = 264,000
If an entity wanted to drive the price up and drop it hard, knowing full well that the book value would be far higher than the price they drove it down to, this is how they could potentially play it to create profit and panic, and more profit on the second return.
Purchase 48M for $264k, push the stock up to triple the price without selling.
$264,000 x 3 = $792,000
.0055 x 3 = .0165pps
$264,000 / .0165 = 16M shares to recoup initial investment
48M - 16M = 32M free shares left
Slow bleed the 16M out near the top and recoup the 264, then sell 32M downward in timed increments, causing fear and doubt, and thus panic selling; and then while profiting at any price by selling the free 32M shares acquired, next thing you know is the pps is down to .0055 where the short position was entered and covering begins below .0055 before driving the price back up, picking up cheap shares along the way on panic.
Eventually the book value catches up and the stock won't trade below that value, but in a worst case manipulation, this is one theory on how the market makers or traders could use a hedge to manipulate a swing. This is being depicted to avoid panic or hopelessness for the long-term holders.
Summary:
Buy the bottom, recoup the initial investment at the top, slow bleed the free shares downward while shorting, drive the price to the bottom, pick up the panic selling, drive the price back up once all the shares from the last run are gone and the short position is covered, rinse and repeat.
Playing the Hedge:
48M bought at .0055 and 26M shorted. On the premise one wanted to hedge and sway a low-floater, this theory came to mind the other day and I thought I would share it in case anyone is interested and/or likes to prepare for "best case/worst case scenarios".
48,000,000 x .0055 = 264,000
If an entity wanted to drive the price up and drop it hard, knowing full well that the book value would be far higher than the price they drove it down to, this is how they could potentially play it to create profit and panic, and more profit on the second return.
Purchase 48M for $264k, push the stock up to triple the price without selling.
$264,000 x 3 = $792,000
.0055 x 3 = .0165pps
$264,000 / .0165 = 16M shares to recoup initial investment
48M - 16M = 32M free shares left
Slow bleed the 16M out near the top and recoup the 264, then sell 32M downward in timed increments, causing fear and doubt, and thus panic selling; and then while profiting at any price by selling the free 32M shares acquired, next thing you know is the pps is down to .0055 where the short position was entered and covering begins below .0055 before driving the price back up, picking up cheap shares along the way on panic.
Eventually the book value catches up and the stock won't trade below that value, but in a worst case manipulation, this is one theory on how the market makers or traders could use a hedge to manipulate a swing. This is being depicted to avoid panic or hopelessness for the long-term holders.
Summary:
Buy the bottom, recoup the initial investment at the top, slow bleed the free shares downward while shorting, drive the price to the bottom, pick up the panic selling, drive the price back up once all the shares from the last run are gone and the short position is covered, rinse and repeat.
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Do your own DD. Assume everyone here is either an amateur trader/investor or a paid interest such as a compensated pumper/basher. My posts are strictly for entertainment purposes. I am not on Wall St., do not work for a group, and only get paid when my personal investments materialize. I am only responsible for my own gains and losses; no one is to blame for my mistakes or for any advice taken from postings; likewise, I am not to blame for any advice you take of mine, regardless of gains or losses from doing so. Good luck to all; may you live long and prosper greatly.
