<Only 2.1 million shares outstanding and 75 percent owned by insiders the float is very small.> You are exactly right, as I understand from reading other posts and sources, the insiders are sitting on this stock, and praying no one presses the market maker to push the price up. They have set up driveoff.com as a wholly owned subsidiary instead of spinning it off to shareholders as a dividend. The reason is that the insiders do not have the personal cash to pay the taxes on this kind of an expected gross profit (CAPITAL GAIN) and therefore are trying hold the stock price down, to slowly, "Sneaky" one broker in denver put it, to keep buying it up. That way when the time comes, and they have to part with some of it, like a secondary offering or new spin out IPO, they will still keep CONTROL INTERESTS.
Right now the CEO has 24%, wishes if he was going to part with half that he had kept 48% instead, and so the story goes, on down the line.
I am,
Truly yours,
-Crystal ball |
