it might help if you think of it like this. Say you have $5m as a sophisticated investor. that's all the capital you have access to. As an Soph you just bought $5m with at .19, now you can sell at .215 - .225. That's between 8% and 13%, after, call it a month. So annualised returns 96% - 156%. Further more, after a month you Gary another call from your broker with another opportunity to a good stock at a discount of 12% to the whatever day volume weighted average. Remember, you only have access to $5m. As a Soph you would want to churn that $5m as many times as you can, buying at a discount in the offers, selling shortly after and looking for the next. Two winners, the company gets the cash it needs and the Soph gets the reduced risk return. The longer the Soph holds the investment the longer they are exposed to the downside risk. it's a game of quick turnover. There was $30m purchased at .19, so there is P L E N T Y of supply.
AL3 Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
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