Monkmojo
3 years ago
Assured Holdings stock didn't go down because of an IPO Here's why...
Assure Holdings Corp.’s recently made public that its below 10% AWM Investment Company, Inc. unloaded Company’s shares for reported $2.63 million on Aug 05. In the deal valued at $4.30 per share,612,566 shares were sold. As a result of this transaction, AWM Investment Company, Inc. now holds 750,000 shares worth roughly $ 1.05 million.
http://knoxdaily.com/2022/08/22/news-assure-holdings-corp-s-below-10-awm-investment-company-inc-reduceds-612566-shares/
Monkmojo
3 years ago
What is a Death Spiral?
Death spiral financing is the result of a badly structured convertible financing used to fund primarily small cap companies in the marketplace, causing the company's stock to fall dramatically, which can lead to the company's ultimate downfall.
Some small companies rely on selling convertible debt to large private investors (see private investment in public equity) to fund their operations and growth. This convertible debt, often convertible preferred stock or convertible debentures, can be converted to the common stock of the issuing company at a discount to the market value of the common stock at the time of each conversion.
Under a “death spiral” scenario, the holder of the convertible debt might short the issuer's common stock at which time the debt holder converts some of the convertible debt to common shares with which he then covers the debt holder's short position. The debt holder continues to sell short and cover with converted stock, which, along with selling by other shareholders alarmed by the falling price, continually weakens the share price, making the shares unattractive to new investors and possibly severely limiting the company's ability to obtain new financing if necessary.
Companies willing to agree to financing on these terms often could not obtain funding through any other means due to their early development stage or credit risk profile. The terms, though viewed by some as onerous, give the lender a potential way to recover their debt regardless of what happens to the shares of the company, and the company an easy access to dilutive but relatively cheap funding in terms of cash cost.
This would explain why Assure Holdings stock price jumped around from $2.00 to $7.00 about a week ago.... because it was in the downward Death Spiral trend already from a previous offering.
Monkmojo
3 years ago
If I can find companies like Chase Bank, Dupont, Nestle and many more that supported the Third Reich rise in power, then I should be able to find a verified list of businesses who use and abuse Dark Pools just for creating Death Spirals.
Since, of course, that's what Assure Holdings really is.
That actually might be a great idea of mine...create a list of Death Spiral businesses
naming it Panama Papers X. Hmmm.
Invest-in-America
3 years ago
YEP! As we ALL know, it's those 'INSIDERS' at the COMPANIES THEMSELVES, who often are the ones who DUMP on the first days of an IPO. Heck --- these days --- full-blown UNDERWRITING INSIDERS can dump with impunity long before the so-called SEC 90-days 'cooling-off' period rule. But, if they do that TOO MUCH, they can't get in at that UNDERWRITING/VENTURE CAPITAL level for at least ONE YEAR (oh, those POOR puppies!).
Invest-in-America
3 years ago
IONM: On nearly EVERY IPO; or (new) Stock Offering of an extant Company; or Markets at the OPEN generally, RETAIL investors (like us) are being played as SUCKERS. Just about EVERY stock GAPS-UP big at the Open, then crashes. MYSELF?? It is a HARD rule to follow, by I normally WAIT at least 1.5+-hours into ANY Open, before I jump on ANY stock. Unless, of course, it is over-the-top glorious news like TRUMP's launch of his "Truth Network" challenge to Twitter & Facebook. On THAT one, I grabbed it at 400% UP already at the Open, yet made circa 4-times by toss. (PS: Trump is fool; I HATE his reprobate, insurrectionist, ASS!!)