Tuesday, August 17, 2021

Is the problem H.C. Wainright?

I have another stock which I recently FOMO bought much the way I bought SRNE last May and have kind of rapidly established a position to near that of my investment in Sorrento. Bitfarms. BITF.

I'm in no way trying to advertise for that stock here but there is something glaring here. H.C. Wainright apparently has a interest in Bitfarms, much as they have in Sorrento. I do not know the exact influence H.C. Wainright has on Sorrento, but I'm guessing it's at least voting rights. I do know H.C. Wainright provided a lot of the fireside chat / conferences / price targets for Sorrento, so there is at least some link there.

What is more interesting is I almost get the impression that H.C. Wainright is in the business of taking companies that are looking for funding, pumping their stock prices up by encouraging the company leadership to make bold claims and/or conferences (i.e. the Vatican conference) - and then using the hype those events create to allow the company to issue ATM offerings, thus the dump part of the scheme. With Bitfarms, their going thing is they use hydro-electric power to mine Bitcoin. So Bitcoin runs, the stock goes up, hits $7, I buy because the consensus online is it will hit $100 if bitcoin hits $100k... and then boom - they today announced they are doing an ATM offering for 1/2 their entire market cap.

I do not know if this is illegal. It sounds to me like it's manipulation at it's finest. I mean if your company only has 2 or 3 analysts following it - they set insane never achievable price targets to make investors think they are getting in at a low price below $20... tell the CEOs to claim they have stuff they do not have - then use your controlling power over the board to encourage diluting the shareholders - I mean to me I see how this works out. It's almost like maybe they are managing the turnaround of various companies this way.

I'm almost thinking that maybe if Sorrento cut their ties with Wainright, maybe we would get a completely different outcome. Or maybe Wainright corrupted the leadership so bad at this point that maybe just maybe we need to oust the CEO to fix this problem?

I'm just really concerned here because I've been holding for 15 months now and it seems we see the same thing happening over and over, almost to the clockwork of a menstrual cycle. Which makes sense too, because it sure bleeds well.


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