RE:Big PictureSocrates, I hope you have an up close persepctive on your point #1 and not just a tingle. Are you able to share anything further?
The debenture is a brilliant way to address point #1. Since there simply are not many "cheap" shares available, the debenture allows institutions in, but at $3.80 (note: QTRH can force conversion at $4.75 after year 3). Institutions could not buy the quantity of shares attached to the debenture (~11M shares) without driving the price into the stratosphere.
Socrates, do you believe that the 11M will sastisfy the institutional/broker/high net worth demand? I suspect not. Now, institutions can feel comfortable buying additional in the short term up to $3.80 on news. There will probably be enough shares available in the short term if one of the several significant catalysts on QTRH's plate kicks in.
Two such calalysts are on the immediate horizon:
- Strong Q3 results (my est. - 04-Nov)
- A significant ITS acquisition sparked by the debenture financing that should close this Wednesday
The next year has elements inplace to be spectacular and I, like you, am very pleased the current management is at the helm. Now, I'll put away the pom-poms.