So if he did convert, that means NO INTEREST PAYMENTS going forward! Which also means we have a sophisticated successful majority investor stepping in at what could be the bottom, just before it breaks out? Something is up that we are not privy to is what I'm thinking.....
Here's a question - does a convertible security immediately increase the outstanding shares, or do they only increase when the conversion happens?
If the O/S shares does not increase automatically with a convertible, then there must be another reason for the expansion to 120M from 108M. Although, the numbers do seemingly add up.
Could it just be that the darn Execs were just awarded 12M shares for their "service"? That might explain it too. Who knows?
My thoughts exactly, he could just have obtained 12M+30M shares without driving the price up! Now why would one want to do that? And, potentially his average for the 42M shares would be around 1.80-ish. Had he purchased on the open market, I'll bet that would have driven us above 2.50. Just a thought......
Wowsa, my chart is showing both as buys....unbelievable!!!!! Could someone be coming in, or Shorty running for the door? 65M on the placement, and it was at PAR. Someone has faith in OCLR since these are 6% UNSECURED notes... at 1.95/sh conversion.
I was sitting here considering what the effects are of the huge losses OCLR has had in the past. Does this mean that when they ramp up and (heaven forbid!) have actual profits, there will be no taxes due until they use up their tax loss carry-forward? Also, anyone purchasing them now would not only get the tech, but the patents, cash on hand, plus that carry-forward loss? Does this mean that getting to profitability will be easier since uncle sam wont be there with his hand out? I can't claim to know all the answers but it sure does generate a lot of questions in my mind.
How convenient, just after ER so no one will ask the tough questions. It's pretty clear, by today's market action this is BAD for shareholders....down now about .30 over the past 3 days, THIS SUX
Yeah, I'm aware of the math, I was swagging the share count since no matter what way it is calculated it seems pretty devastating to existing shareholders. 65M in funds, and why would they buy at a 2-ish conversion? Seems to me the conversion will have to be lower than that to entice interest. Unless, once again, the little guy is in the street and last to know. Which seems to be the standard MO here. So, say 35M shares get shorted over the next few months. LOL. Does it really matter whether its 35M or 55M? Either way we go into the toilet on share price......
I admit I'm not well versed in those plays - but the implications are maybe 50M shares being sold short over the next what, few months? That will drive this into the toilet, 1$ or less. Is that even feasible with the low volume and low share price that we currently "enjoy"?
Trying to put a positive spin on this, I guess it must be good news that they CAN raise funds - although the price and conversion rate are the KEY.
Don't convertibles actually rank along with shareholders in terms of asset claims? If these were normal bonds they would have additional guarantees in the event of adverse conditions. Personally, I'd want a really good reward to justify the risk on these. Of course, I'm a shareholder so I'm already taking a risk....LOL At least these folks will be getting interest payments in the interim.
so, this is what, a 50% dilution to existing shareholders. We have 108M shares outstanding, after this, assuming full conversion we end up with 160M shares outstanding. The interest is INCREASE losses and so the previous prediction was hard to get profitability, not they have to RAISE THE BAR to get to profitability. I just don't see how this is good for us? I don't have the full picture of course, maybe there is a golden path that these additional funds give us access to so the company actually will make a lot of additional Revs. Who knows. Huge share turnover this AM, 1.7M shares so far and we are only 1 hour into trading. Of course, it is all DOWN.
I guess shorty must be back, seeing easy pickings with low volume low price stock. Who would want to sell after seeing such good progress on last ER? I have to say, the trading patterns in this stock SUX.
I listened to the ER call, and I heard multiple references to "simplified balance sheet" with removal of the other units/sales of same. I agree going forward the reality will be 100g sales and execution, none of the other distractions. Even the expensive FAB's they have, it was indicated that their utilization levels allow for significant expansion without that part needing updates. So, I'm thinking that these efforts are truly different than the stories sold in the past to shareholders. Which is probably why shorty is heading for the hills today, and maybe even some new, genuine buyers of this stock. I admit I've had my doubts, but listening yesterday sure sounded like hard work and execution have been the going themes lately at OCLR.
otherwise, this has had runups prior to ER, and then the drop. This time, if we get run downs prior to ER and then the drop, this will be at a buck for sure. This SUX
and here I was thinking 4 or 4.50. Seems those days are gone Gone GONE....
Thanks mgmt. of OCLR, why in heaven's name should we have expected any different when more of the same stepped into the CEO's job from the executive board.....sheesh we really are not smart....
up a little DOWN A LOT. Either this is going to 0, or it is being manipulated like crazy. The company as 90M in CASH!!! The valuation now is what, 45 cents for the business? Really? Where is MGMT? What are they doing?????
I'm with you too. Here's my concern - this thing drops to 1.25 or something like that. A buyer comes in and offers 1.75 and we are so low it looks good in comparison. "Offer 50% above current price...." or something like that. I was previous posting 4.50, then 4.00 for a sale, but now that looks like a miracle. I've said it before, shorts are TRASH and that should not be allowed. Why is it an asset that I OWN can be taken from me and sold? Isn't that really like funny money? (illustrating my perspective) If someone wants to borrow my shares to short, THEY SHOULD PAY ME, not the dam brokerage house.