Exit Strategies for Public Companies There are three ways that public company insiders can convert their equity into cash. 1. They can sell their stock to the public. This is the goal of the insiders in most OTCBB and Nasdaq Small Cap Companies. It's summarized in the axiom "Pump & Dump." The stock is promoted as the insiders sell their shares into the public … [Read more...]

Short Selling Strategies here are dozens of ways to sell short a stock. 1. Traditional Short Sale: Borrow the stock against a fifty percent margin. This is the only type of short sale that can be squeezed when the share price moves up because the short seller must add money to their margin account. 2. A Market Maker Short Sale: U. S. Market Makers are not required to … [Read more...]

Porter's Five Forces Analysis Harvard professor Michael Porter describes five forces affecting the profitability of companies. These are the five forces he noted: 1) Intensity of rivalry amongst existing competitors 2) Threat of entry by new competitors 3) Pressure from substitute products 4) Bargaining power of buyers (customers) 5) Bargaining power of suppliers These … [Read more...]