i am not sure what you mean by economy of scale. if there is a hot ipo market why not sell shares to the eager public.
I have just been reviewing my old posts today and when I read the opening post to this thread I couldn´t for the life of remember where I had seen LAKE mentioned before somewhere. Anyway I am an avid reader of Rearden Metals posts and it was here where I found the connection. On the 29th October he posted a call shorting LAKE. http://www.elitetrader.com/et/index...onal-market-calls.210020/page-86#post-4044945 My post was dated the 14th But its great to see I was perhaps going down the same road as RM. My guess is that he saw through the bull shit rally looking to get long and rich Ebola stocks and waited for it to be flattened. So this has now since spurred my interest and I will look further in to these setups. I never really liked stocks but I am now starting to see some benefits of trading them especially the fact that a lot of dumb money is involved in them and also for the fact that mispricing like LAKE can occur without being noticed due to less publicity compared to where the smart money hangs around
Here is further reference to this. http://www.goodetrades.com/2014/12/belated-post-sec-suspends-trading-in-purported-ebola-stocks/