Is this the way it ends? Someone or some entity sold 1.7 million after hours, which put total volume over 3 million for the day. There was no news to precipitate almost a 40% haircut and whoever sold took a big loss. It makes me wonder if it was Aspire or one of the other financiers who bought into Dr. Ali's story as the stock steadily tanked since recording a price of $3.51 on Jan 6, 2012. "Not with a bang, but with a whimper."
I have wondered that a lot, but then again I can be stupidly stubborn. Tomorrow and next week should be interesting. Has Dr. Ali been blindly optimistic, disingenuous, or something in between? If TranSwitch goes down, he will have lost a lot more than I. Then again, he had more money to start with.
Everything empirical has been universally negative for a long, long time and it shows in the stock price. I apparently bought into a dream that was simply that. I think they have enough money to make it to year end to pull the proverbial rabbit out of the hat. Stuff happens.
Maybe Steinhardt just wants his money. Maybe he sold. Ali, the BOD etc. picked up the shares after hours and just lowered their cost basis enough so they can accept whatever offer these unnamed firms offered for the company. Steiny exercises his other 9 million share option there are ~70 million shares. 50-60 cents a share sale price is ~$35-$40 million sale price.
It just occurred to me that unless they can get the stock price up to $0.255 by December 15, that effectively ends their funding from Steinhardt. What are their remaining options? The Bridge Bank loan is contingent upon them raising $2.5 million in December. If they can't raise the money, I believe the loan becomes due immediately. I suppose a patent sale is possible, but they have never named a successor to Drake's Bay, which makes it unlikely. Dr. Ali is running out of altitude, airspeed, and ideas.
"Dead skunk in the middle of the road, stinkin' to high heaven." Loudon Wainwright III
Guess we may find out something tomorrow, or maybe not....but fwiw TXCC ended Q2 with ~$800k in cash. Bosi said in last CC they collected ~$700k early in Q3 from delayed IP contract. Plus they got the $2.5 million from Steinhardt, so that put cash at roughly $4 million and they also resigned with Bridge Bank. It is possible Q3 has turned out even worse than Q2 (though it hasn't ended yet) and TXCC will blow thru that cash and BB will decide not to lend them any more money. Who knows.....?
This is crazy !? Now the market cap is barely 7 million seriously this is sick !!! Now ---Ali you really suck!!! Plain simple terrible mangment !!! No good news no press release !!! Sell the company Ali