Robert, I think that the person asking all those questions about who is buying all these shares is missing the point. The floorless gets the shares at 30% or discount to trailing prices, he turns around and sell them into the market on the spot (sometimes, probably before he actually gets his hands on the shares, so he gets a deeper discount since the shares keep dropping). If someone was buying these shares and keeping them, there would not have been a constant supply of shares dropped on the market. These shares will see a penny, IMHO, before the year is out, that is 1/10 of the current value, by then there might be another 500 MM shares on the market, and a reverse split.
Some people are being taken to the cleaner, very clearly. New buyers or those "averaging down" believe that the risk is now"so small" since the stock is so close to nil, well a 100 for 1 reverse split when the shares at $.01 will give you (between 4 MM to 10 MM new shares, depending how far the current printing process goes), and shares at $1, which could once more go down the drain.
If this company business model is viable, and I believe they still must show that, let them do it at one place and start showing positive cash flow, then and only then go into those grandiose plans of building these plants all over the place.
Zeev |
