I don't understand their delay in converting...
...unless there is a deal with their short coalition partners.
From Level II, it appears that CC sold quite a few shares at 6, and held the price at 6 for two and half days following the PO announcement. They were also selling in the 5s prior to the announcement. I think they have shorted completely against the remaining series B preferred, a total of about 650k shares.
Since Tuesday, CC appears to have been holding the line at 8. My guess is that they were selling against their warrants. They have about 900k warrants that convert at 6.73. It is hard to understand the logic of shorting against the warrants, because they have two years to run, and have a significant time value. Nonetheless, this appears to be what happened this week. At this point, I suspect they have sold about 400k+ against the 900k warrants. This is approximately the warrants connected with the series B, the other half came from the series A.
I can't explain why CC didn't convert the remaining series B earlier, and can't explain why they don't do it now, if indeed they have sold/shorted 650k shares against the series B and another 400k against the warrants. Who knows what kind of deals these guys have with the floorless bandits?
In any case, if the big selling through REDI and INCA has been CC, then they have not only hedged the series B, but also a significant number of the warrants.
We are close to getting back to a market where CC no longer will be manipulating the price of our stock.
Paul |
