Accepted and appreciated, Bruce. I also regret having stated my thoughts about your motives as if they were fact. My apologies as well.
Back to the topic at hand, my sense is that if CC is cashing in their stock (by shorting or converting now, it doesn't matter) and selling at these levels, that won't drive the price down. It does put a lid on it, however. And we are likely seeing that lid as the effect of the share dilution (roughly 10% total, for both tranches, at the fixed conversion price; neither good nor bad). It would take a concerted effort at some later point to drive the stock below 6 and hold it there long enough to get a lower conversion price (other market factors aside), so at this time, that seems like the low-probability event. Recall the revised conditions for the potential 'floating conversion' were harder to meet. I would ask, 'Why would CC agree to more difficult terms to the floating conversion, unless it's just a fail-safe mechanism, not truly intended to be used?' I see no reason to focus our attention on the potential 'floating conversion' issue, at this point in time. |
