For the past 5 or 6 months you've all been touting BLTI management as the "greatest thing since white bread". Now all of a sudden they are a bunch rotten conniving s**ts. Are you people for real? You don't have the slightest idea what management's plans are and yet you assume the worst. Up to now they have always acted in the company's (and investors) best LONG TERM interests. Now, because your measly few shares have come down a couple of bucks temporarily you want to organize a lynch party. I have every faith that Jones & Co. will use the proceeds of the secondary to enhance the company's long term prospects and with it your sorry pocketbooks. Now stop whining and enjoy the next year or two's ride.
A company that lays all its' plans on the table will soon lose its' competitive and market advantages. The company is not in business to satisfy the needs of either the traders or the short sellers. The long term investor should be the prime benefactor.
I can't show you the rule but I believe a trusted poster on the ALD board who answered my question regarding naked shorting posted regarding BLTI. The uderwriter can naked short because it's a new offering. As you probably recall the SEC filing for the offering was previously posted here and included that provision. For other issues concerning naked shorting go to mssg # 18231 on ALD board
they can sell to market makers in fact the underwriter is also a market maker. the naked short is not important, their not going to short it below the offering price they buy stock below the offering price to keep the price up during the offering period.
<you sir don't know what you are talking about...a naked short is selling a stock that is not even on loan.... >
Where did you get this idea? Can a company, a bank, an investment bank, or a stock underwriter do that? Does SEC allow it? Will appreciate the link to the rule.
Anyone can short a stock. I have a margin account, and can "naked sell" a stock anytime I want. There are different margin requirements for stock of different share prices. Shorting is one of the things that make the markets move, and therefore more efficient.
Although I would not short BLTI right now. The big boys have shorted this stock down with some well placed (sell) orders of 5-10K so they can pick it back up cheaply when they have to buy lots and lots of shares with the index additions. It's easy to do with a stock having avg daily volume less than one million.
Markets are three people.
Big boys- millions to 100millions to invest
investors- people in the know who tend to be buy and hold, like the company and will stick with it.
traders- both swing and day, don't have a clue about the company, will drive the price up and down dpending only on the stock charts using their technical analysis.
Fundamentally this stock is strong, and the business model is working great. It HAD to go down after the rise for the last 6 months.
Now its clear to go back up.
This will be last down week for blti no matter what the broader markets do
sunbuyers, in the absence of alternative explanations by management, why do you think they needed to agree to allow naked short selling by the underwriters? Is that the cost of getting the underwriters to agree to become market makers? If not, I don't see a reasonable explanation that works to the benefit of shareholders...
In the event the underwriters inadvertently sell more then the amount of shares they were allocated, those extra shares sold would be considered "naked short sales". If they didn't put a provision in the prospectus, allowing this situation, there could be problems with the SEC about disclosure. How the offering price is decided is in the prospectus. The new stock is not sold directly to the market makers or used as market maker inventory, it is sold to investors who purchase free of commissions. The investor can turn around and sell immediately, and if he does the underwriters/brokers registered representative who sold the stock gets in real hot water. To protect the success of the underwriting, they are allowed to support the stock the day of the sale. They will not let the stock price go below the new stock offering price until the new stock is sold out.
I am probably in the crybaby category myself. However, I don't think management lately is doing a good job of protecting long or short-term shareholders. The stock has taken a beaten lately, which I had little trouble with understanding, as it had run up quite quickly. Then the bombshell common share offering from out of nowhere. This has to shake many an average investor right out of the stock.
BLTI's management has always been fair in the past. They kept the average investor in the loop, as it were. Suddenly, I and others, don't feel we're in the loop.
I own a very good size position in BLTI. I won't sell any because I believe the potential for enormous gains is there. But the suddenness of the drop and offering are just too close together not have a sense that someone was given advance warning of events. I am a loyal investor, but that doesn't mean I'm cannot connect the dots, and won't say so when I sense something doesn't smell right. If that makes me a crybaby, so be it. After all, it's my money on the line, along with many other average loyal investors out there.
The remedy for all this is simple. Coime out with some press that lets the world know things are going along fine. If management wants to keep quiet about what it plans to do with all the money raised in the offering fine by me for now. But help us out by giving us some idea what's going on with earnings and revenues. We do not want to see the stock price take any more of a beating than it already has.
I disagree with one part of your post. Mgmt has NO responsibility to "short term stockholders". Their responsibility is to grow revenues and profits over the long term. Otherwise, they would be trying to satisfy everyone from MO MO players to day traders. Not possible and not wise.
Amen!!...well put, sunbuyers
I cannot understand all this "whoa is me talk"...just as I can't understand, how some think adding money for their stated objectives, without adding any debt, is a bad thing........would you have been happy if they floated a convertable bond, that matures with the same amount of stock going out in 10 years at this price?...give me a break
What exactly is the "big secret"..the press release lays out what the money is for. My only problem was with Rueters, who too the press release and made it sound like they were selling 2.5M shares to only pay off 1.8M debt....makes it sound like the shares are being sold for 80 cents.
Having run businesses before, I can tell you first hand, it takes money to expand and grow. And if you want to do it at an excelerated pace, it takes more money. Who's to say, there plan all along is to double their sales staff in the U.S....would that be a bad thing?
If you read the Press Release from BLTI, it spells out what the money is for. Try stepping back for a second and think about what you're so mad about. If GE had bought 13% of the company for 30M, would you be so upset? The effect on dilution would be the same. So instead take out GE and put in the 30 or 40 pension funds that will actually buy the stock.