Thanks, Jack.
Nice day today. Up to the peak offer of 4.31 we had 12,500 shares at the offer and 20,400 at the bid. The offer dropped 3/32 while the bid held over the last four hours with 47,900 shares bought at the offer and 29,500 shares sold at the bid, interestingly, even though the MMs were showing twice as many bids as offers (see note below). Four big blocks of 5k+ sold today, all at 4.15 or 4.18 and one 5k was picked up near the close at 4.21.
So far this month, the average close is at $4.6 which allows the preferred investors to buy at $3.9 come March. If they all chose to convert their allotment for the month, it would be 283k shares as of today. Yesterday, the average close was $4.67 and they could have converted 279k shares at 85% of that price. I'm betting they MMs are powerless over a bid to sell just under the current bid that's too big to fill and is driving them nuts. I suspect that pretty soon this bid will be retracted and the price will be free to rise like a cork at the bottom of the ocean. (According to the S1, once the average price is above $5, shares can be converted at $5 and not less, it's only when the price dips below $5 that they have the option of taking 85% of the average closing price of the preceeding 20 trading days from the date they choose to convert.)
WH |
