It's Only Short Term : Pressure From Warrants Conversion
posted on
Sep 16, 2021 04:49PM
This board is toxic when the SP goes down and euphoric when it goes up.
It seems relatively obvious to me that the remaining $0.52 warrants holders have left it a little late to sell Poet stock and get the warrants converted. This is a self perpetuating event, the SP is squeezed as the stock is sold and warrant conversions are executed, but as the price is squeezed more than the warrant holders were expecting, the sell action becomes a little more frantic.
This episode of warrants conversion is absolutely temporary.
They expire on Nov 2nd.
It takes 3 business days for cash settlement when shares are sold so that changes the effective date to Friday Oct 29th. But that does dot allow for any communication & processing time.
So with that said, this pressure could last, perhaps another 4 weeks max. Probably less than that. It could end tomorrow; we will not know until we pop out the other side of this temporary situation.
And do not think for a New York minute that the market does not know this and will absolutely take advantage of it. Any investor with half a brain will not chase the market, when it is likely the market will come to them. This is basic trading knowledge.
Of paramount importance are the commercialization fundamentals. These are solid.
Samples are shipping; performance is excellent and as per Adrian's clarity, commercialization is expected in Q4 2021. That means design wins and supply agreements.
Then we are expected to launch on the NASDAQ. By the looks of things in Q1 2022.
That's when the fireworks start. This has been a long road, but it will be worth it.