Quote:
Originally Posted by Pinkmann
The big issue I see is that it seems like a decent bet, but why are institutions and insiders still holding if an obvious and imminent doom is just a few months away?
I'm assuming all EM has to do is have a profitable quarter and he will be able to rope in some capital.
It's actually backwards; if the insiders sell even one share that isn't for tax purposes, then I will concede defeat as well. That the insiders haven't sold a single share this year other than for tax purposes is a very big tell. Either they have materially negative information preventing them from selling, or they are enjoined from selling by the SEC at this point. Or, they are choosing to light money on fire intentionally to gaslight shorts, which I suppose could be a thing.
I assume EM will have a profitable Q3 if he survives that long. The question is whether he can raise or not, because I think if he could have raised he would've done so by now, so he might also be enjoined by the SEC or from the capital markets from doing so. If it's the latter, then I suppose it is possible that he can raise, but perhaps not with a whistleblower lawsuit pending.
As for the large institutional holders, who knows what they are waiting for.