Your post is very good, but I don't agree that the shorting is illegal. Please help educate me and explain what is illegal about it.
While I await your explaination I'll try one of my own. Tell me what you think of it.
The S-3 investors own a convertable stock. For every share they sell at the offer--which is what is happening here--they convert at a 20% discount. Why convert and then try to sell, incurring a market risk when you can sell, then convert and lock in the profit. And remember if they sell at $1 and the stock goes down to $.75 then they get a discount from $.75, increasing their profit.
OK, so we know who is selling and how. Anyone who watches the tape sees most of the trades at the offer, with the S-3ers filling the buys. Yesterday in the last 1/2 hr about 200,000 shares traded. Like everyday this week heavy volume at the end, and the volume is on the buy side, or the stock would be lower. I don't think anyone here doubts that if 200,000 shares "hit the bid" the price would be $.25. So the $64,000 ? is who is buying?
Bonfiglio has been on the road talking up the technology trying to find a cross license "partner", so this technology is not a secret. We may wake up one morning to find one or more pharma companies bought a big piece of this company cheap. (I won't complain) 13-D's are not filed until one has accumlated 4.9% of the company's stock, or for sake of arguement 1.75MM shares. While TCLN talks about $10MM for a cross license deal for less than 20% of that you can get a big slice of the whole pie.
I'm glad someone else talks to DV. I haven't spoken to him in some time, and if TCLN hadn't used his name as a contact person on its press releases I wouldn't have know him at all. But he always seemed to be a good business person. If TCLN had listened to him MGMT would have kept its money in the bank and contracted out its manufacturing. They wold still have $10,000,000 cash, less employees, etc. Every biotech company that spent money on facilities before they were needed got burned. This has happened to Lon before with ACY. Its too bad that not only can't he learn from the mistakes of others but he desn't learn from his own. Now we have a facility with nothing to manufacture for at leat a year and no money. The facility they had before spending all this money was just fine for manufacturing the quantities needed for clinical trials. After the drugs get approved when people are throwing money at you is the time to build a manufacturing plant.
I like your optimism, and the optimism on the Yahoo line. Everyone here should read it. Its fun to read the analogies of war that are posted there. Davis posts over on Yahoo!!, he is still looking for me, and like here he is subtle as a brick. It seems like here the readers realize he talks out of both sides of his mouth. Still I love him for his enthusiasm. Just a note Davis. No one on Yahoo knows me, unless they read this thread and then they know who I am because I posted it. I'm still waiting for your bonifides.
This stock is going to stay here until one of several things happen.
1) The selling by the public-not the S-3's-take the stock lower. Unlikely.
2) All the S-3 stock is bought--unlikely. Do the math, $12,000,000 converted into stock at $.80. Thats alot of stock.
3) After the cap is set if the Board has addressed the mgmt problems
the S-3's may decide to hold on for the ride. Then they can take the stock to $5 or 6 and make many dollars on their investment instead of a measley 20%. I won't complain.
Like you Dave, I've bought stock here. In fact I've bought stock at $1 every time I had the opportunity and never lost money. We have maybe a couple of tough months. Maybe less. For someone who has owned this stock for over 15 years that's just like a good nights sleep. Well, maybe not good.
Have a nice weekend, everyone. |
