Pronichev, I do not think that Bill is claiming the company is fraudulent, he refers more to the constant stream of "inside tips" from a number of posters pointing only the positive sides and completely neglecting and "poo-pooing" the actual SEC registration statements of the company. These are quite clear and do not hide a thing, and everyone willing to rely on for instance the last S3-A, would very well know that the company faces extremely difficult times.
By the way, to an earlier question about CC having to file insider trading statement is they short against the block, since CC converted and most probably sold their first floorless, they probably need not file any statement on the shorting they might have been doing recently .
As for Bill's short position, if you went around and shorted every issue that has a floorless pending and the shorting you do is above the ceiling (in this case, $6.03), you would most probably do very well. In 80% you have a good chance on being on the right side of a death spiral, and in the other cases, the holders of the floorless will help you keep the price down by shorting (they call it hedging) against the block whenever the stock goes some 15% to 25% above the ceiling. The last registration covering some 1.5 MM or more shares was for the first CC floorless, and I would not be surprised that the stock was not actually sold but delivered against earlier hedging positions. If that is the case, CC has probably completed its hedging position against the new tranche and you can expect another S3 statement after July.
Zeev |
