Big seller didn't show today.
The market maker JPMS has been selling more than 50% of the shares for the last three weeks, day in and day out. Today JPMS did not show at all, for the entire day. I believe JPMS was handling shares for CC.
CC used the market maker INCA to short and sell shares against the series B in September. INCA tried to hold the price down today, dropping about 4-5k at each price level at 4 5/8, 4 11/16, 4 3/4, and 4 13/16 today. I estimate INCA sold about 20k shares in that attempt. Often they were the only MM on the ask, early in the day.
We saw some short covering by the big shorts at SHWD and NITE early in the day. And a lot of selling from a number of sources when the stock tested the resistance at 4 15/16 and 5. I believe this is short term traders and MMs taking some short term profits after stripping shares from CC at lower prices earlier in the week.
I believe CC is essentially out of shares at this point, and if they want to keep selling they will have to short naked (highly unlikely). They need to drive the closing bid to 4 11/16, 4 9/16, and 4 1/2 on the first three days next week, to prevent a rising conversion price. They are faced with a certain conversion decision; they must convert before the conversion price rises too much, because they have sold/shorted against all the remaining shares they would get from the series B. And their average short/sale price is less than 5.
This next conversion, will be the official end of the floorless.
Paul |
