Stevo, think about this also. Karoon's stock is like thier currency. It allows them to raise money in the market place. If someone can keep thier currency depressed they can hinder the ability for them to raise money so then they have to sell off assets, or sell out. And if they can make the currency appear worthless, then who wants it?
You see it happen all the time. Intel (INTC) was notorious for this practice. Especially under Andy Grove in the early years. (his famous line, only the paranoid survive) Intel would spend millions shorting thier competitors stocks to destroy the value in them. Companies that were good that they made appear worthless. Intel was the largest shorter of AMD stock for years to keep the price depressed. Of course it's all done through brokers in other names and shell companies but Intel spent tens of millions and made billions.
Microsoft did the same thing. They knew the stock price was the lifeblood of financing for thier competitors and would shut that door.
Look at Karoon, what if we could've done a cash raising at $10 a share instead of $5, how many less shares would we have to sell? How much stronger would we look?
It'a a big game with billions at stake, and for only a couple million someone is controlling it.
KAR Price at posting:
$4.14 Sentiment: Buy Disclosure: Held
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