SGH Warrants, page-17

fff, let's say I'm a trader with a hold time frame of a month or two no more. I could have bought a sizeable holding from $2.55 up to $3.29 (the last run up) and then gradually sold them down supplementing with shorts to create selling pressure. My average of all those trades up plus trades down will be positive = profit + shorts in the money. I then repeat the cycle again. So long as there is no serious buyers I can do this indefinitely and make a handsome profit.

So when they buy SGH they have no interest in S&G, probably hardly no what they do - it is just a short term strategy. Commonly known as pump and dump. Investors genuinely interested in holding the company for the long term cannot compete with that over a few months. Their selling will stop when the net profit from buy/sells is approaching zero (but shorts increasingly in the money) - if keep selling below a point their buys are not sufficiently low to support further declines and the risk increases of them. For that reason there is a floor.