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Thursday, April 27, 2017 3:29:33 PM
You've got it wrong friend.
DRYS is converting debt into shares at a discount (around 20% by my calculation) which are then sold into the market. The note holder makes an immediate profit. DRYS gets debt off their books.
And because the market fundamentally misunderstands what's happening (and because there's so much shorting), the stock falls by 50%.
Of course that's bad for anyone looking to sell short term, BUT after this happens several times, anyone who bought during the third or fourth round has paid 30 cents on the dollar for the money that DRYS now has.
And if you're buying now, it's around 13 cents on the dollar.
This is VERY different than typical toxic convertibles, which are convertible at the option of the LENDER AND convertible at a fixed discount to the market price looking BACKWARD.
Now, if you were one of the buyers who jumped in when this started and paid over $10/share, then I can see why you'd be pissed.
Luckily, I wasn't.
DRYS is converting debt into shares at a discount (around 20% by my calculation) which are then sold into the market. The note holder makes an immediate profit. DRYS gets debt off their books.
And because the market fundamentally misunderstands what's happening (and because there's so much shorting), the stock falls by 50%.
Of course that's bad for anyone looking to sell short term, BUT after this happens several times, anyone who bought during the third or fourth round has paid 30 cents on the dollar for the money that DRYS now has.
And if you're buying now, it's around 13 cents on the dollar.
This is VERY different than typical toxic convertibles, which are convertible at the option of the LENDER AND convertible at a fixed discount to the market price looking BACKWARD.
Now, if you were one of the buyers who jumped in when this started and paid over $10/share, then I can see why you'd be pissed.
Luckily, I wasn't.
TA - Over $500 million in toxic funded pump and dumps exposed and growing every day!
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