I've asked myself the same questions Truman. I suspect Paul and Kristi may know more about the Series C shareholders, and hence their motivation for taking a mere 34% annualized return and running out the door. Remember that they get 8% interest on their investment up until conversion and they buy at 15% below market based upon the average closing price during the five days prior to conversion.
With only 11 shareholders, each person averaged over a half a million dollar investment, some probably more. If I invested 500,000 and could take back $600,000 in just 6 months, how would I feel? OK I suspect. But, (like you) I'd rather have my $500K turn into a million, and that could easily happen if I converted at this level and the price went back to $1/share (not a stretch in my opinion, and something that has already happened one in the last 30 days).
I have a question written down for Paul re: this exact issue. He'll be back on Wednesday and I'll call him from South Carolina, where I'll be on vacation.
Even though I think most converted shares are being sold, I don't think all of the converted shares are sold immediately. Some may be held and sold after another 25%-50% gain? We saw <$0.50/share recently, and then the stock jumped to $1, and now we're back at <$0.50....it seems to me that some are converting and selling right away, some are selling some at conversion, and holding the rest...only to sell later for another 25-50%+ gain on top of their initial 30%+ annualized gain. Either way, these shares are causing the volume to skyrocket, and for the price to be very volatile, and for the most part move down and not up.
Not knowing who the Series C shareholders are, it's hard to know what their personal motivations are. |
