Aww, razor, PO or not, longs believe Lev and co. are on track, so there's no reason to 'fear' a massive short-selling rout by Castle Creek to try to get more shares.
Have you done the math? Have you seen the short position? over 1.8M now. CC has only 2.5M share costing less than $5.85/share (as of july, factoring in the 'interest' acc. to the formula) and the 900,000 warrants cost them $6.78. So if they spend all their shares trying to push the price down below $5.85, and they need to hold it down their for 6/10 consecutive days to benefit, what does it buy them? If they hold it 10% lower they get 10% more shares ... but they wasted maybe 1M preferred in order to do it ... since deep pockets on the sidelines are not stupid, and know that POs are VERY close ... so the result is that CC LOSES if they even attempt a 'short rout' ... No, it's only the small-time shorts trying to rattle the cage in advance.
Rather, CC has the MOST to gain if they hold tightly to EVERY share they have, and wait for the millenium before selling ANY of them. Period. Sorry to burst your collective bubble, shorts. Better cover now.
So Castle Creeks' 'floorless' is essentially toothless, as long as Valence really has POs sometime before fall, even.
Yawn. Wake me when the PO's are announced, and wake John, too....
'Til then, fluctuations in share price are just noise .... and longs have nary a worry. All systems really ARE 'go' ...
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