Give the lovely damsels on Aviantruth's luxury barge my regards.
You better be correct regarding sub $ 2.00. The lovely damsels have HUGE cash flow requirements.
Wow, I hope you haven't taken the day off? 29M working against you.. Ouch...
Sentiment: Strong Buy
I'm not a trader. Not scared at all. 20M is on my side, you made a good call, but of course, like any short it could turn on you fast than you think...
The only hands I played into is my own. cha CHING!
I would say Aspire is very happy you decided to short. With yours another shorts help they can get cheaper shares. You've played into their hand very nicely
Ovtilong. First Aspire are not buying stock in the market, but being issued stock at a discount to market prices, at approximately 3%. So there is no buying pressure. Secondly the additional dilution that comes with such new issues means that existing stockholders, who have already endured 98% drop from the highs are likely to remain under pressure.
You mention that there is the elephant in the room of a lack of production facilities which again will require a further issue of capital and thus a further dilution to existing stockholders, if and whether they do get to that point. So buying alone, from the company, is unlikely to drive the PPS higher without some additional alternative to spending $6m per quarter and no revenues.
Who knows, as you say.... Aspire from what I can see appear to have created a mechanism that says they will invest over a long period, but buy in small volume and whether you believe the speculation or not, may be pumping the stock into the market profiting on the arbitrage position between what they buy and what the market pays on the day. Because there is no announcement on the days of each buy so no one knows until the ed of each quarter how much new stock has been issued, and perhaps no one then knows how much, provided they remain below reporting thresholds of Rule 13D SEC filing documents.
Of the 15 or 16 companies in which Aspire have been reported of investing in such schemes I have only been able to find 2 Rule 13D filings. Yet the amounts claimed to be invested, had Aspire held the stock during the term of the Purchase Agreement in every case would have exceeded the reporting requirement. So I do not believe Aspire have any long term commitment to this, or any other cash starved companies they have invested in. Nothing anyone could not find in a Google search.
How do you beat 20M? Are you just banking on them never buying these shares? I mean do you think it was a ruse?
At the moment I don't see the argument in going short. I can't argue that the company's stock has been a disaster for years, is that the reasoning? Now that I could agree on, but with all this new development and their complete reversal of a green company play into an enhanced additive play has changed their prospects and broadened their product's viability. Not to mention that they have a capital investment company committing to buying $20M worth of stock. I mean, even if the company continues to fail at execution for the next several months the buying alone should appreciate the PPS. Who knows, maybe the company will never get a larger mfg facilities than their current test facilities. Maybe Apsire is banking on this and is currently seeking a buyout candidate. Who knows right, but ask yourself this... Why would Aspire bother with this #$%$ underperforming company?