Why hasn't CC converted?
I don't understand why they haven't converted at this point. They have already lost 60k shares by not converting early last week, and will lose another 50k shares in the next three days, if the closing bid remains flat with today's closing bid.
Furthermore, we are seeing primarily a single seller again pounding the price down, this time through REDI, the market maker who hit the stock hard in early to mid August.
I really don't understand their game, unless it is some sort of statistical play on a pool of floorless stocks. Even then, I am not sure I understand it. The average short price is around 5.00 (likely below), and the conversion price should climb above that level this week, unless they accelerate their selling. The selling coalition will be underwater soon on their short position, vis a vis the conversion price.
Looks like I was wrong on CC converting within two weeks... If I had a rational explanation for this, I would state it, but I can't see a rational reason why they did not convert. CC seems to be satisfied with carrying a losing short position on VLNC for some period of time.
Paul |
