You haven't done your homework.
You wrote: "Paul, sounds like a lot of double talk to me.
I believe it when management says that they have contacted the interim financier, and they claim not to be selling lately. At least I have some basis for that. You haven't even bothered to try and find out what management thinks of the 'leaky floorless' theory you have supported at every turn. Sound to me, like you haven't done your homework.
You also proclaim:
"That could easily mean they have already sold all the stock they acquired, possibly before they acquired it, consistent with the leaky floorless theory."
You not only haven't done your homework, you are missing the point... If the interim financier is not responsible for the recent wave of selling over the last 2 1/2 weeks, then who is?
If its CC, it leaves your 'death spiral' theory on the ropes, ready to crash to the floor in the final round. If CC is behind this recent wave of selling, it means they are almost out of the game. Even if CC wasn't behind this recent selling, they still are short enough against the series B to be forced into a conversion decision. My conclusion; its very likely that CC is behind the recent selling.
And this gives a very good explanation to why CC converted the series A preferred shares. They shorted so much against the series A and remaining series B, that they couldn't find any more shares to short... so they had to convert to finish hedging series B. You haven't provided any reasonable alternative explanation as to why CC would convert the series A at this time.
You cling to your 'death spiral' even when it is apparent the death spiral is finished... they never were able to get a spiral accelerating down below 3 as you and Zeev predicted. Instead we got a floor that held through three attacks and produced three bottoms around 4 1/2.
And you keep pounding away at the 'leaky floorless' theory... when really its too soon to tell for sure. Even if we assume that there is only one interim financier, they may have sold shares this summer, but not now at the lower prices. In fact, the reduction in the last financing round to $2 million could be due to the fact that the interim financier who took that round, couldn't take more without going over 5%.
And you dismiss management's statements as unreliable, but then you have never bothered to tallk to the company.
Your theories are collapsing, and will suffer another blow when CC converts the remaining floorless... Are you willing to say that they won't convert in the next two weeks?
Paul |
