Please all, read this entirely (especially you Andre!)
(Sam, I am glad you see some of my points)
I just talked with the a woman at the TA who sounded knowledgeable. She
indicates that the exchange (the offer) will not reduce the number of
common shares outstanding. I asked this question point blank.
I also said "so what is happening here is that the company is giving me 2
shares of preferred stock for my 100 shares of common, I keep the
preferred, they keep the common". She said yes.
She said the offer actually increases the number of shares outstanding by
the number of preferred shares which get issued.
Retired shares are merely shares which the company now has in its coffers,
as opposed to being in the hands of shareholders. Forgot about the 2.5M from shareholders.
According to the the group and Brad before todays announcement:
100M shares total
-50M in the 4 companies
-10M insiders
-19M retired via offer
21M in float
After todays announcement (note that the insider no. rose to 12M
100M
-50M
-12M insider shares sent to TA
-19M
-2.5M new shares for the offer
16.5M in float.
All of this assumes of course that the 50M is not in the float.
This does not jive with what the TA says (90M in float, apparently after
the retirement of 19M shares). This is probably a minor administrative
thing. My main issue continues to be the 50M. I think it is softer than
the many in this group believe (I believe that some of it, if not much of it, has been
leaked into the float).
There is a lot of misinformation which is put out on the thread. Why
doesn't Brad step in and correct it?
Why doesn't he clarify it?
He could very easily state the facts succinctly, and save a tremendous
amount of confusion.
Why?
I'm not trying to talk this stock down, or naysay. I would just like us to
be crystal clear about how large the float actually is, and I have to say
there is much confusion in my mind on this point.
I guess my problem is that I look at things objectively.
I see the claims two months ago that there were 20M uncovered shorts by the
MM's.
For two months I have watched day in and day out the counts showing that
the MM's are selling more than they are buying.
I am sure that the MM's monitor the thread, so they know we are calling for
our certs, and trying for a short squeeze.
They know that by our count there are millions of uncovered shorts out
there. Nay tens of millions.
They know that if they bring the ask down we stand ready to buy heavily.
So what do they do, they bring the ask down. I can see logic in bringing
the bid down, so they can buy cheaper, but why bring the ask down? It just
doesn't make sense, and these are not stupid people.
To me the logic is inescapeable, they are getting inventory somewhere,
somehow. They want to sell. Not to drive the price down, but to make
money. I want to figure out where they are getting this inventory. Until
we do, we can't complete our short squeeze.
Like always, this is just my opinion, and I continue to hold in the hope
that we can buy up the float, but there is something that just doesn't add up. |
