nothing was filed last night - Honig's tiny investment (140k shares) was filed on 11/27 with the SEC - and according to SEC documents he also holds 60k in the $3.4 mln convertible note which is now convertible at $0.20. It is all in the filings or why do you think the stock has tanked 50% on red hot Bitcoin news ?
old news and guess: Barry holds 60k in notes entitling him to cash in on 300k additional cheap shares at $0.20
my example shows a mistake
sales proceeds would be $750k and the gain would be $650k but it remains the same on a percentage basis
actually there's no need to cover as the shorted shares will be delivered from the note conversion - so there won't be any short squeeze
no - the Bitcoin acquisition will prevent the share price from going that low but frankly I don't know when this will settle. The conference call tomorrow might bring some new information.
clearly this is what happened today - noteholders hedging their gains by shorting the shares - nobody would resist a 700% gain I guess
actually the share price is under pressure from the note investors hedging their $0.20 shares against the current stock market price. By shorting the shares today they lock in their giant gains - they will later convert the notes and close out their short position by delivering the converted $0.20 shares. As there are 17,000,000 shares to be converted the share price should remain under pressure for some time.
I hold $ 100,000 in WPCS notes convertible into 500,000 new shares at $0.20 - so to lock in my gains I short 500,000 shares of WPCS on the Nasdaq stock exchange at about $1.70 for a $1.50 gain PER SHARE for total sales proceeds of $7.5 mln and a gain of $6.5 mln on my original investment of $1 mln.
That's what I call printing money.
The reduction of the note conversion price diluted shareholders by 95% so today's haircut does not look all that bad given what really happened.
which calculates to $30,000 per month - the company is a joke
actually the article is cleverly written by suggesting RSOL will switch to the Solar City business model by partnering with a strong financing partner very soon and then drawing some valuation conclusions from this assumption. While I don't think this will happen the article will give the stock a boost today. Looking to cover my remaining short here.
yes - the assets belonged to two college graduates which agreed to sell them to the newly founded company
should have covered some more at $2 on Monday I guess...
given the pre-market action I would expect this to close below $1 as there seems to be absolutely unlimited share supply
I don't have a clue - I am in this for 15 years and have never seen this type of action so far. Even with all the valid red flags mentioned above the stock should fly on the pure mention of the Bitcoin buzz phrase.
I am long 5k shares at $3 though just to dip my toe in the water
stock has given back a 70% after hours gain to turn negative and there seems to be absolutely unlimited share supply which looks strange given the fact that the company only has just below 1,300,000 shares outstanding.
investors seem to be spooked by the convert conditions relating to authorizing some 75,000,000 shares for no given reason and the fact that the acquisition seems very low quality with WPCS paying money for the poorly programmed hobby of two fledglings.
bad timing for WPCS I guess
looking for some rationale here
it wasn't all great though - I disliked the cash flow projection for FY14 but overall the business seems to trend in the right way. Wouldn't expect much price appreciation until the second half of 2014. The company needs to show ongoing execution.