KDB, I don't understand how you can interpret LD's acquisition of stock as a negative. He's obligated to pay for it at $5 1/6 whether he borrowed the money or not. It is generally viewed as a NEGATIVE WHEN A CEO SELLS a sizable amount. Insider buying is considered positive. If it seems like a clever move, remember who is now running our company.
We have already been through the blown Sony deal, Cal's resignation, and several weeks of insider selling that drove the stock down. We learned later that he needed to raise a tidy sum to exercise his options to buy back at an average somewhere around $1.60 per share.
After what we've been through, it appears just the mention of insider action of any kind is apparently enough to trigger some anxiety. I understand how you feel and have had my share of sleepless nights over this company myself, but not lately. Remember that the company has at last gone on record with a production timetable over the newswires.
I can't find anything negative with Lev's acquisition of several thousand shares. It can only be interpreted as a vote of confidence. Can he pay the interest? This is not the first company he has founded and I doubt that he came back as CEO because he needed the salary.
I know its sometimes tough to wait when good news seems imminent and there is no news. Perhaps its like laying down a $5000 blackjack bet and there is a delay before your next card - a ton of anxiety and odds less than 50% that you will come out on top. I rate the odds of coming out over $5/sh with Valence at least 20 to 1 (this just went up after Lev's acquisition)
Regarding DA, if you read the entirety of the 13D filing that I spent a few minutes on to look up the LD's interest rate for you, it could become apparent that Dave may have put in some overtime to get that document finished - at least it may explain why he couldn't come to the phone! About 2 months ago I was told that the office was working 60-70 hrs per week.
As your post suggests, speculative stocks are not for everyone. If you can't sleep over this, perhaps you should sell some of your position. Now that you have announced your dissatisfaction on a public forum, however, expect some buyers to back away in hope that they can acquire your stock at a lower price.
With that in mind, you may want to hold on a little longer. You could even be pleasantly surprised! Get some sleep and cheer up!
Best Regards, FMK |
