Rich Wolf;
The nasty thing about this kind of deal is that if the price goes sufficiently low, say, 5 or less CC can short at the lower price level and keep shorting thus putting the stock into a death spiral. The majority of all holders of the stock own it above 5. that means they could be trapped giving a short seller tremendous control with under 5% of the outstanding shares. Someone keeps adding to the shorts and it is not the public, for sure. That is why on every peak since the beginning of the year the peak comes regularly and at successively lower figures. If it were public shorting we would see up and down fluctuations in the short interest but there are none, only up. CC has done this death spiral thing successfully, before. That doesn't mean it is they who are doing it. They may have as much interest in seeing the stock go up so, that they can convert with a quick profit, as they might by pulling the short stunt. However, someone does have a real interest in shorting and has committed millions knowing that with the money running out and the need for refinancing imminent VLNC is in a particularly, weak position vis a vis its stock's price this summer and these shorts know it. What we may be seeing is a siege. Sieges are almost, always slow, grinding experiences. In other words, financial warfare. One other thought occurs to me and that is a siege by a larger, potential competitor. Someone who has an interest in seeing VLNC's financing delayed so that it is damaged financially or delayed sufficiently not to be a factor as a competitor to its own line of products. It has been known to happen. The shorts could be owned beneficially so that, its name never comes up. These shorts are professionals and professionals at anything always try to cut their risks and usually do. So, we must assume they know something we don't know, at this point. There is a saying, "Never try to beat a man at his own game.". It is almost always true. A good maxim to go by in the stock market.
Bill
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