Jim, You are correct about the rights offering being the trigger, all it takes to pull it is investor confidence. Once both the investors on the Yahoo board and this board all start sounding like they know it is going to work, they will be doing themselves and any continuing short seller a favor and the shorting will stop and covering will begin.
I mention the short seller being done a favor as well in the above paragraph, because all the negative talk from those who don't understand, just trap the shorts into thinking that maybe there is hope and so they short more to buy time. There is no hope for a short now. The flexibility of the Convert, and the fact that now all but some 350,000 of all shares are in the hands of the Smith family, Moody and Kennedy Capital and "Nutstoo" on the Yahoo board. And these "Big Four" are either restricted from selling or are still adding, and are long the stock for the duration.
At this stage of the game, all the dis-information in the world is not going to let them totally out of the trap. Nothing short of actual outright criminal fraud will do that. I don't render a guess as to the size of any short here, but the math and the volume tells me there could be a large one. If that is true, it is probably in the long term best interest of the true believers and the Company if there is a large number of real sellers shaken out to reduce the size of the short, leaving the remaining shares in the hands of only the strongest, so that the inevitable upward movement is solid, but tempered.
Regarding your comment about a quiet period while the financial are being reviewed. This does not affect the Form 10 filing, but it could have some minor effect on the Form SB-2 filing for the rights offering. But it really is not that onerous. All it does is restrict the Company from "hyping the stock" with other then factual news. Something, I have not seen this Company do in the four months I have been involved, anyway. |
