Most of the day, the stock traded between 4 and 4.1 cents. Someone painted the tape for the last trade at 4.5 cents. Tomorrow, the stock will be trading in the 3's.
News of more distributorships does nothing. The ones they have cannot sell a product that wont sell. Even more Garza rumors will not move the stock in the face of intense selling by the 2011 lenders. The lenders at most sold less than 2 million shares today. The rest was traders bouncing in and out of the stock.
By the time the next installment occurs on Aug 24, the lenders will have another 118 million shares to sell and they will only have 21 business days to unload the shares before the next allotment. That is almost 6 million shares per day.
...READ THAT AGAIN. THEY WILL NEED TO SELL 6 MILLION SHARES PER DAY...Beginning on August 24.
When calculating the conversion price for each installment, keep in mind that the 10% ownership limit for each note holder, there are four note holders and everyone has different percentage in the installment amount. If they don't want to be affiliated to the company then they have to follow the 10% cap. From today's metrics, 198 million share outstanding and the 2009 note holders chose not to convert their note which will mature on Sep. 24. In one word, the conversion price has a bottom cap. GLTA
The lenders can avoid any limitations on the number of shares issued at one time so there is no bottom limit on the share price as long as they remain within the 750 million share authorizaton.
There are installment dates but the lenders then submit a form within enclosure 1 where they can designate the amount of notes and preferred shares they want to convert at that time. There does not appear to be any limitation as the the number of forms that may be submitted, only the amount of the total installment.
The lenders can always limit their conversions to remain outside of any restrictions.
well the message board . . . it was nasty, hence the 2 in my handle . . . we all got TOS'd, lol . . . still in SD, but moving out to the desert . . . i am no longer "living off the equity" , now leaving my atop the mountain (ATM) house, lol . . . i was an evil RE flipper . . .
Selling 6 million shares per day will be impossible unless someone is ready to buy huge amounts. The MM's and normal day traders will not handle this type of volume everyday. One thing is for sure, if I see this type of volume, I will know that someone, for some specific reason is buying big.
Julie, the lenders will get the volume. All they have to do is lower the price to attract buyers.
The 2011 lenders are not selling at a loss. The shares they first sold have been adjusted to the 70% rules. That's why they feel ok to sell at 4 cents. They got them at 3.5 cents.
I think the lenders are fully aware they will not be able to sell the last installment due to Radient filing chapter but they will have sold at a profit to make up for it.
I do not consider this a waste of time. It is entertaining to watch this evolve. I have just never witnessed anything quite like it.
The company signed an agreement that guarantees massive dilution where the 750 million share authorization may not even cover the total required shares to satisfy the 2011 lenders let alone the 2009 lenders.
What is even more amazing is that investors keep buying the shares hoping for a miracle. Reality may set in a little after Aug 24 when the lenders need to sell 6 million shares a day. The daily volume will need to be about 10 million or more.
The most incredible statement made is longs claiming that no one would say anything bad about the stock if it wasn't a good stock. That type of logic is almost insane.