Kurt, I think that a limitation existed as to the percentage of outstanding shares that could be converted by the Series C Preferreds as well as the monthly limitations, but that when a price jump of at least 115% of the average of the 4 lowest closing prices in the last 20 days occurred, the Preferreds were freed up to convert additional shares. Wendy at GMGC had confirmed this for me in the fall.
This is one of the main reasons, imho, that we cannot hold any of the price spikes after positive news. This discussion is certainly not a new one, but once conversions occur thus pushing the price back a bit by flooding the market with shares to cash out of their position, the negative psychology takes over.
Most investors do not follow these details as closely as we are, and it can appear that this stock just floats within a few point range without apparent cause. The Balance Sheet woes definitely contribute to holding back the price right now, but the negative psychology that has built up due to the conversions and sales of those shares is increasingly difficult to overcome as well.
Of course, if GMGC acts positively upon its new found freedom afforded it by the Special Meeting, and also decides along with its partners that it is time to tell us finally what they know, this chapter will be quickly closed,imho. Let's just hope it occurs in a time frame prior to losing investor confidence. I feel it will.
Best wishes to all believers in the magic.
Seconds Out. |
