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Interesting article linked about drop box going public next year. I wonder if they were waiting for the public to forget about Box, a competitor who went publi
by chollida1 10y ago
Interesting article linked about drop box going public next year. I wonder if they were waiting for the public to forget about Box, a competitor who went public and whose stock has, well, under performed since.
https://www.bloomberg.com/news/articles/2016-08-15/dropbox-said-to-discuss-possible-2017-ipo-in-talks-with-advisers https://www.bloomberg.com/news/articles/2016-08-15/dropbox-s...
As to Neuromama, some people speculated yesterday that the owners were trying to make money via a short squeeze. I can't say this is wrong but I'd be surprised if that was their game.
For one, any decent short seller will lock in their borrow before they short. This means that the owner can't call back their shares for the agreed upon duration.
Secondly there haven't really been any large transactions in the stock. So maybe there is a short seller out there holding 1000 shares short but that's not really going to make the owners any real money.
Thirdly, the short interest is very small, not even a day's worth of liquidity, which says something when the stock hardly trades at all.
Fourthly, and perhaps this is the least compelling point, its an OTC stock. ie its a scummy stock, many brokerages wont' let the average person short this stock and most professionals won't touch it as the downside from shorting just isn't there. I mean every short seller knows that a stock can only go down to zero but in the short term almost any stock can shoot up.
See KBIO for horror stories of what can happen when people who shouldn't be shorting decide to short stocks, hint Martin Shkreli is involved.