Anthony,
Thanks for your comments. Posting the prices and info on trading each day allows me to implant the stock action into my mind; it also provides reference material should I need it, as well as allowing others to see the price when they look at the last 25 messages section on SI--this is another way of advertising, and having them notice when, and if, the stock starts moving up<VBG>.
In reference to Reg S--yes, they are nasty loan vehicles. Many people have been burned by them; that is why there are so many negative comments surrounding them. Companies resort to Reg S financing when there are no other means to obtain regular financing. With respect as to when the Preferreds will convert: ideally at their exact opportune time. They won't convert when the stock is falling, lest they provide it with more negative momentum--that is unless they become very desperate. The ideal time for them to convert is when the stock has already hit its low, and has obtained enough sustained positive momentum, that when they convert, their conversion, and the resulting increase in shares, will not stop the stock from continuing in an upwards direction--in other words--they will convert when the company is on its way to being successful. Now, on the other hand, if the company was going to fail, they will convert when they are absolutely sure that is going to happen--then it is every man for himself--they will want out, just like we would. In the meantime, they will work very hard to ensure the success of the company--that is how they are going to earn the eventual big dollars---not a measly 30% return (to them), or less, on their money. When they convert they become just like you, and me, regular stockholders--at the time of conversion they have essentially put their money on the table and are in the game--they aren't going to want to see the stock going down from that point in time. That is the long, and short of it. Given 100% hindsight and the choice, believing this company was going to be successful, we would all have bought at the low, but we are all in it at whatever level we got in at, and are willing to wait out the turnaround, if there is to be one. In the meantime, we choose not to sell until the market provides us with an opportunity, or we have no other choice. |
