Shorters using Warrants to limit their risk, page-12

My most recent comment was trying to show the low probability of the shorts being hedged by the wts., as well as question tuna's characterization of the underwriters and bond buyers. The concept would make sense if the Black Scholes valuation model was applicable for a real trade here. In this situation, you can establish and trade off of a real value when shorting the stock, but because of the things i mentioned, on the wt side you only have theoretical pricing. I think the bottom bottom line is that GR tried to fit two "One size fits all" shorts on QIN, one being the "ponzi" allegation (check out Ackman's pain in his Herbalife trade), the other the "we don't trust any Chinese company, so if target has done business with a Chinese company it's a fraud" (somebody is doing billions of real business with Chinese companies, must be something to do with a quickly developing consumer class with a billion buyers, and super low labor costs). It seems QIN may have been deceived by the Chinese buyer, but I think there are one or two other buyers in that country. QIN isn't a small company dependent on one buyer, or even one product. Multiple revenue streams with years of runway, no debt maturities in sight, and no covenants to break. "IF THE GLOVE DON'T FIT YOU MUST ACQUIT", or cover!

ps. One last thing, I love this company, but it is nowhere near investment grade. Smack dab in the middle of Junk, which is still a fine place to be!