Zeev, regarding CC you wrote:
>> As for why CC.....The fact is that their conversion and the big reduction in short
>> coincided very well with the bottom in the stock, telling objective observers
>> that they knew few things before we did.
>> With advanced knowledge, I would have bought in the $4 to $5 area (and could end up
>> in jail for using inside information, which I did not).
What Castle Creek knew before we did was exactly how
much capital they had to play with and how they planned
to attack the stock! Of course they called the bottom -
they were creating it for cripes sake!
The question in that regard you still fail completely
to address is the fact that CC had a huge long position
in a company on the cusp of success. If they really
were anything less than clueless or totally unconcerned
about the fundamentals then why the hell would they
have wasted so much of that???? They made maybe $5-7M
when they could have had $60M very easily within just a
couple of months. Even if the stock overshot fair value
(which btw i don't think is true), clearly selling at $6
just before very key milestones were announced shows that
CC did not have a clue what was going on, and lost HUGE
profits as a result.
They could have held much more than 5% long without
having to report because it was in the convertable
preferred so it did not count towards 5% until exercised.
Any way you look at it, they left $50M on the table.
So your suggestion that they are smart, resourceful,
up-to-date and knowledgble about how the company is actually
doing seems to me to be deep nonsense.
I don't think they are stupid, far from it. I just know
that they are fixed on their short side discipline and have
demonstrated complete ignorance of the state of business
at the company - OTHERWISE THEY COULD HAVE HAD $50M which
they threw away playing shortie.
Forgive my antagonism. we have some natural tension,
you being an opportunistic trader and me being in the
stock because of the fundamentals. I can't help but attack
your views that the stock is really worth single digits,
especially when you publically agree with Larry who is
very negative and antagonistic. I will also note that
your quick analysis of the fundamentals/financials etc
have always been way off the mark. The company is on record
that they will have $250M run rate next year.
btw one last note in the spirit of open and honest
disclosure, I own 150,000 shares. just how many shares
have you been trading in and out? It will help everyone
on the thread to know if you are nickle and dime or if
you're really putting any serious money at risk.
oh and one last thing: please don't continue to mimic
brubaker by implying that if the company talks to brokers,
analysts or private investors that it means they are giving
out material information. That's slander and you know it. |
