re: Ancient Tiger - Words of Wisdom

Bought or borrowed?

I have much to learn. Thank you AT.

How do you know it’s a short seller? I think anyone would see that headline and think like I did ... wow someone bought 10% of the company! It must be good!

Do you just research the company and figure out that’s their intention?

You’re incredible guess I won’t place an order at opening on Monday.

Short sellers can take long positions too. Citron Research is famous for short selling but has made significant gains on long positions. EMA didn’t need to buy shares to short the stock, that’s counterproductive. The most likely play is they ride CBBT up, then open their short position and sell their 9.9% stake. The 9.9% is key since they can sell that position at any point. There’s much more restrictions once you own 10% of a company. Once CBBT shows signs of leveling out they’ll probably flip their position. But I doubt that happens Monday

Hi AT--what is your opinion on the number of shares outstanding in ZOM? is the vet market big enough to generate enough income from their products to justify a billion dollar valuation of their company?

Also have you ever look at SMLR?

Thanks in advance!!

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EMA didn’t need to buy shares to short the stock, that’s counterproductive

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EMA doesn't buy shares of anybody. They are one of the larger toxic debt lenders in the game. They lend money with incredibly generous conversion terms.

With CBBT, looking at the latest periodic filing available (which is back at 3/31/19), they have these notes with EMA, Auctus, and Crown Bridge - all death spiral note lenders.

To show you how crazy these notes are (and how the EMAs of the world come to own 10%) - here is the conversion terms of the note EMA has with CBBT:

"The conversion price is 55% multiplied by the lowest Trading Price during the twenty trading days prior to the conversion date"

Think about that... if they convert tomorrow, they get shares at 55% of the lowest trade in the last 20 days... lowest in the last 20 was $0.071 which means their conversion price is $0.039. Not bad. Then if the note defaults (which they all do as these companies are never going to pay it back), the principal goes up 50% and sometimes the conversion rate percentage drops even more! Nevermind warrants with price round downs that go with these.

Now imagine the shares they got back when this traded at .0003 and shite. That is how shares outstanding on 9/30/18 were 10 million and by 3/31/19 became 80 million.

Point being, there interest is not to short - their interest is to convert and then pump. Then reload and repeat. And the other point is they are not buying the stock.... they are lending money and using conversions and liquidity to get massive returns. As a side note, you will see in these usually preferred being issued to management (called super preferreds) to maintain voting rights as the # of common explode.

Not trying to encourage or discourage the investment - just clarifying what this player means.


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