Bruce, first thank you for the compliments, second, I am really sorry you did not heed my forebodings re CTYS, I did my best and took even more abuse then I am taking here, particularly in view that FMK of that thread was a very brilliant professor of Economics from no less than the Chicago University (a Freedman disciple, thus a lot of respect must be heeded to his point of view as well).
Why am I here? Well, it is a floorless what else?
Why despite it being a floorless am I considering putting some (not much) of my SEP into this one. Well this floorless does not (yet) cover much of the equity base ( right now about $7.5 MM out of $150 MM in market capitalization), but more important, VLNC, if successful, and if managing to stay afloat could become an important participant in a multi billion dollar market, and a market that is going to grow faster then the economy.
What precaution do I take not to get caught in a death spiral? A stop loss under the support area of $5/share.
As I said once before (and recently, I believe on the HEC thread, or was it here?), floorless situations do sometimes present unique opportunities, particularly when they are eliminated (AKSEF, the call two years ago, "the floorless are gone", that was worth a triple bagger from $2 and change to $6.5), HEC for a short time in the next two weeks, when the repricing period will be over, and it will be in the bandits' benefit to have a healthy rally (I estimate to $3 or higher) into which they'll short with abandon (they will need bunch of volume and what better then some bullish Islero announcement to get millions of shares trading daily into which they can short?).
But, as I said, I am not ready yet to be a long term investor in VLNC until the floorless situation is completely clear, yet, in the meanwhile there are going to be rallies and retrenchments which are quite tradeable.
Zeev |
