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Message: What we got here is...

What we got here is...

posted on Jul 20, 2009 09:06PM


a failure to communicate...

all in my opinion, please do your own DD,this is not investment advice.

My guess is one of two very different things happened today. The good part is that both are very positive for us shareholders.

First scenario: this 63X Master Fund has been accumulating shares on the open market. Decided they had hit the 10% threshold and reported it. The wording got messed up in their PR and it was written as a PP buy instead of open market buy. This theory would support what I've been posting about someone very big picking off shares over the past three months. The biggest net buyer over the last 3months has been UBS, and the average price of those buys has been $4.11 ...UBS has bought close to 4.5million shares net during that period. Also, when has anyone ever seen a financing done at a price to the fourth decimal like this one at $4.0128? $4 sure, $4.01 maybe, but come on $4.012? If this is true, and I think it is, we will see a correction from the fund tomorrow. The question will then become, who owns the fund? Is it a major? Is it a hedge fund?

Second scenario: this was an orchastrated bear raid. A fake NR was put out with the intention of people seeing the purchase price on the deal at $4.0128. Hoping for a reaction from shareholder figuring that the stock would go down towards $4 giving the unscrupulous arse's cover to do some serious buying into the wave of selling. This would also be positive for us because if there are people out there that desperate to get stock that they would risk going to jail, then we're in pretty good shape sitting on what we own if you know what I mean.

My bet is the first scenario, but as I said either works for us, I'm just happy that this management team wasn't stupid enough to dilute us here as that would have been seriously disappointing.

Best regards and enjoy the ride!
Buck

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