General comments/chat, page-25204

I'm not here to defend shorting however it can actually protect smaller, less sophisticated investors since overvalued co's are called out/shorted so their price then drops to more realistic levels. This arguably has protected many potential new investors in ADN who would have bought at $0.40+ had it not been for the shorting actively.

Re the recent capital raise, personally I don't believe that the shorters had any inside info re the capital raise - this would be illegal and anyone engaging in this practice risks prosecution and imprisonment. Also, any such insider trading would logically have to involve a number of ADN management (including board members) because there would have had to be consensus well in advance of the raise re how big the raise would be, raise price etc. Shorters have been shorting for months, so this raise would need to have been agreed to at senior management/board level months ago. Crazy! It's simply not logical or plausible.

A much more logical explanation is that shorters anticipated that there would be a raise in due course - the raise price and timing was unknown etc, however on the balance of probabilities ADN would need to raise and would likely be doing so at a lower price than what we have experienced in the last few months. So the shorters went short and then monitored the situation with a view to riding the price lower until the sentiment changed - as it turned out the big raise was announced which allowed the shorters to cover their shorts around the $0.15 level.

Finally, IMO ADN is still not cheap - it's still capitalised at around $380 million which IMO is a lot for a company that is still working out which products it plans to sell.

GLTA & DYOR