"Why would a CEO of an institution buy that many warrants and options that are close to expiring"
Joe Dwek Management Inc manages many Limited Partnerships, created for the purposes of acquiring Flow-through shares from the treasury of exploring corproations, via their Mineraldfields and Pathway programs. The 'after-tax' cost base of the LP shares is a lot lower than the indirect subscription price (less than 25% if my recall is OK), so break-even point is a lot lower than the usual retail envestor. Also, there is a written policy of them that they cash out their positions as soon as possible, and JDM gets 50% of profits after break-even point is achieved, ie the investor (the limited partner) gets its 'aftertax' cost back, and only then JDM gets to share 50/50 with the investor.
Just trying from memory to summarize my understanding of the process, please anyone correct me or complete if necessery.
That kind of medium-large investor may not act in the same pattern as a mere retail investor. Just look at how they react during the course of the last SPQ take-over... They certainly never fall in any kind of loving situation with any stock they're in! They have the hearth of a robot! 19 cents was a very great deal for them!!! Securizing to have them onboard because they sure made full Due Diligence. JDM (and any other tax-shelter managers) have a reputation to defend, and hate losing any money.
GLTA.
BaBe.
(PS: I invested lately in a Quebec Mineraldfield LP. When I asked them to tell me in which companies my LP was invested, they replied that they never disclose that for competition purposes, which I easily understand...)
