RE:RE:crazySeriously, will you guys just have a more patience. We are up 100% YTD. Tagging the MA20, after the golden cross two weeks ago. The barcoding is clearly means we have big players rebalancing their positions. Also funds will do their rebalance second week of March.
MM has blended price per share of .41 (0.54 pps for reduction of deb from $100M + the conversion price of .285 for the remaining $36.5M). That means they are not a seller below that. It also doesn't make sense that they keep the price below .45 to prevent the deb from forced conversion. Why? Beecause the deb yields 11% and converts at .285. If sp hits VWAP .45 for 10+ days then why not just convert and sell?? 11% on top of .285 is just .32, they are better off converting and sell.
The new investors that came in at .31 - they are not selling now either.
We'll see the short position soon enough but perhaps the culprit is some new entity trying to accumulate in the .285 to .31 zone. It picks this zone to not compete with the new hands from the second raise and MM. The new hands can sell if they want from .31 and up. MM's got .41 to .54. I would think that MM is 100% seller > .54 unless its upper management deviates from its usual MO.
Keep in mind entities like MM makes its money doing mostly arbitrage so they are definitely not in the business to hold anything long term, regardless of the fundamentals. Not every hand is in this for the long term.
All we can do is wait for better results and when institutional buying interest picks up (already got upgrades and increased TPs, rebalances coming soon), then we'll break out.