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PNRA [NASD] Panera Bread Company
Services | Specialty Eateries | USA
Based off charger Bottom Buster scan.
Attempted to enter Nov 160C @ 3.80 w/ no fill. Like the longer term potential here w/ near-term Golden Cross
TWTR [NYSE] Twitter Inc
Technology | Internet Information Providers | USA
Based off charger Bottom Buster scan.
Jumped a session premature, but took a position in Nov 8(W) 40C @ 1.27 -- looking for move above $42
TWTR [NYSE] Twitter Inc
Technology | Internet Information Providers | USA
Based off charger Bottom Buster scan.
Jumped a session premature, but took a position in Nov 8(W) 40C @ 1.27 -- looking for move above $42
Reality: the filings are telling the investor that the underlying common shares are now registered so Preferred Share conversion should be monitored for the foreseeable future.
Notice of Effectiveness
The Prospectus Filing was required following the S1 filing that was in turn required per the Registration Rights Agreement entered into during the last Private Placement at the end of September (which included Mr Edery).
All normal actions.
There is a ~151k share difference between 10/6 and 10/15 filings, however, those shares can only be 1 of 2 types:
1.) Unregistered and thus restricted for 6 months minimum
2.) Converted ~ $60k Preferred Shares which would have been available for resale as of the 1st trading session following the date of the Notice (which equates to 10/31)
The company cannot "dilute" free trading shares as they have no registered shares in their treasury. They can only issue unregistered shares that carry a 6 month minimum restriction or issue (now) registered common shares to cover Preferred Share conversions.
The holders of the Preferred Shares have a contractual obligation to not sell shares until the end of November, and the company should be able to track conversions if they so desired; but I would not rule out the possibility of early selling...
I'm posting a Money Flow chart that contains the Conversion Zones moving forward. The share conversion/selling will act as a governor to price appreciation until investments are risk reduced. I see the sell zones up/until the somewhat infamous .94 area (0.185 pre-Split).
Flipped F Nov 7(W) 13C +26.97% in 2 daze (5min chart #msg-106742624)
Still holding:
F shares 16.58 #msg-106378145
AMD [NYSE] Advanced Micro Devices Inc
Technology | Semiconductor - Broad Line | USA
A chance to $3? Buy volume not conviction, but still > 3% of Float which is what I like to see -vs- larger short interest.
Activity @ $3 Strike for Nov (3,209 contracts) and Jan (1,073 contracts). (Nov looks like a 3C/2.5P Strangle.)
May be a bit too close to mid-bb (Buy + write Covered Calls [Nov 7(W) 2.5C > $0.30]?).
AMD [NYSE] Advanced Micro Devices Inc
Technology | Semiconductor - Broad Line | USA
A chance to $3? Buy volume not conviction, but still > 3% of Float which is what I like to see -vs- larger short interest.
Activity @ $3 Strike for Nov (3,209 contracts) and Jan (1,073 contracts). (Nov looks like a 3C/2.5P Strangle.)
May be a bit too close to mid-bb (Buy + write Covered Calls [Nov 7(W) 2.5C > $0.30]?).
Flipped F Oct 31(W) 13.5C +41.38% in 2 daze (5min chart #msg-106742624)
Still holding:
F shares 16.58 #msg-106378145
Not sure how long the election hangover will last for Brazilian stocks-- I'll keep it on watch along w/ GGB, but I'll probably pass on the trade opp interloper
agreed reconranger-- definitely too light in volume ATM. The lighter volume one I like is SZMK-- with its smaller float and high short interest (#msg-107558848 )...
... reminds me a little of UNXL back in June-- caught an apparent mini short cover run (#msg-102561440 )
I'll be watching this one and TX (also a Steel Co Pincher w/ exposure to Brazil/Latin America) tomorrow interloper, but given the incumbent president just won the rub-off election the prevailing opinion seems to favor some weakness in the Brazilian Stock Market tomorrow.
http://headlines.ransquawk.com/headlines/analysis-brazilian-presidential-elections-concluded-today-26-10-2014
SZMK [NASD] Sizmek Inc
Services | Advertising Agencies | USA
Smaller Float w/ Large Short Interest & currently trades @ > 1% daily.
SZMK [NASD] Sizmek Inc
Services | Advertising Agencies | USA
Smaller Float w/ Large Short Interest & currently trades @ > 1% daily.
Sold VLO Oct 24(W) 47.5C (10/21) -50.46% in 30 daze #msg-106448309
Flipped F Oct 31(W) 13.5C (10/23) +28.99% in 3 daze (5min chart #msg-106742624)
Expired NOV Oct 24(W) 81C -100% in 41 daze #msg-106338566
Still holding:
F shares 16.58 #msg-106378145
Money Flow Chart Update: "OTC TA is Really SaD (Supply and Demand)"
In the OTC, sustained successful trading depends upon understanding the dynamics of Supply and Demand (SaD)-- it is that simple. Standard Technical Analysis (and even the made up kind) does not track this phenomena as it concentrates on price movement and not the volume it brings or lacks. This is where using Money Flow TA, which tracks volume, will help one "analyze" SaD...
Money Flow TA 3 Cycle Detects the "Fly" in the Ointment: Money MOMO (ChiOsc) red/green pairing displays a slight separation-- a sharper green up-slope would help determine movement conviction. Short-term Retail (CMF 3) (#2 on chart) blasts thru "power zone" (> .5) as does short-term (MFI 3) "Smart" money through the "signal line" (50). However, the "fly" shows up in both monthly Retail (CMF 21) & monthly "Smart" (MFI 21), as they both took a slight divergent tick downward. This is the result of losing the remaining higher buy volume sessions last month-- once again re-emphasizing the need for increased volume on the demand (buy) side to sustain and develop the movement. Regardless, the stock should still get 1 more up-session with an additional 2-4 demand conditional. Today's session counts as confirmation of the short-term up-cycle-- an MFI 21 movement above the signal line (50) will strengthen the probability for a longer (trend) cycle to evolve.
% Volume (PVO) (#3 on chart) working in longs favor ever so slightly; but again-- assuming buy volume is maintained -- we should get a positive 12/26 crossover within 2 sessions.
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Added Sine Wave w/ Reverse Split reset price as midpoint. Key price areas to watch: Fibonacci pivot support (S1) @ .434 (now in confluence with mid-bb) and (S2) @ .307 (full session above)-- sub-price points: .365 (Raff Regression breached today) and .25 (Lower BB)
My TA/FA target short-term is leaning TA @ ~.55 (FA says .58) but I am prepared to sell @ .44 depending on volume thru the confluence.
Money Flow Chart Update: "Give Us a Sine (Wave)-- Not a (Fake) High (Wave)"
Slight increase in volume w/ upward aligned money flow suggests the short term Money Flow up-cycle is back in play. Additionally, seller appeared to move up to .304 & took the afternoon off.
Money Flow TA 3 Cycle 3rd Time Charm?: Money MOMO (ChiOsc) ended up flat but maintained a green status-- afternoon buying hopeful. Both monthly (CMF 21) & short-term Retail (CMF 3) (#2 on chart) moving back towards stronger position above "power zone" (> .5). Short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21), albeit w/ a smaller grade, are aligned w/ CMF movement w/ MFI 21 closing in on the "signal line" (50). This is in a more favorable position (Green Rectangle/Purple Lines) than last time (Red Rectangle/Purple Lines). Could get 2-4 sessions positive movement from here (1-2 sessions to confirm).
% Volume (PVO) (#3 on chart) still lagging; but assuming buy volume is maintained we should get a positive 12/26 crossover within 3 sessions.
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Added Sine Wave w/ Reverse Split reset price as midpoint. Key price areas to watch: Fibonacci pivot support (S1) @ .434 and (S2) @ .307 (breached a 3rd time-- and more extensively -- today)-- sub-price points: .372 (Raff Regression) and .26 (Lower BB)
I've placed my bet on an upward movement in the short-term. To that end, I am in hopeful agreement Phin
GLTU
I understand what you are saying, but you are assuming a selling action equates to a "panic sale" that has no factual foundation. additionally, building bids in the OTC could just as easily be another manipulative trading technique of "matching orders" (party A has shares he/she needs to sell and party B agrees to buy them. Party B places an order at the bid or above the bid and Party A sells into their order) or even false support which would vanish (get pulled) if "hit" (sold into).
With illiquid/thinly traded OTC securities, wash trading is yet another manipulative trading technique that is prevalent (Party A controls multiple accounts and buys & sells between accounts to present an illusion of liquidity).
Labeling activity in "investor friendly" terms is also prevalent. "Panic sells," "Naked Shorting," "Market Maker Manipulation," etc. are all readily used terms assigned to actions with little to no proof (and in some cases by redefining benign actions because they carry negatively connoted labels [i.e. FINRA's "Daily Short Volume"]).
The overwhelming majority of factual based manipulative practices are undertaken by entities from within (insiders, affiliates, 3rd party, fellow "long(s)," etc.)...
... having said all this, I conceded in the Money Flow Chart update that the seller(s) appeared to be willing to let the stock breath a little from here...
I appreciate your honesty for the purpose of this discussion.
There were only 30 trades Friday for a total of $51,193.09.
Up until your trade, the low was .285 and the high was .329.
The median price at that time was .307.
Throughout the session, 17 trades went off below the median with 13 above, which is a 57/43 split. Down pressure was greater than up, but not considerably...
... however the 17 "down" trades totaled $38,564.75, whereas the 13 "up" trades totaled $12,628.34, which is a 75/25 split. That is a strong case for a significant down day in terms of money flow.
Clearly the session underwent significant selling pressure in relation to buying pressure.
So I submit your "paint" was not representative of the general trading activity. On the other hand, your specific argument is that the .32-level would have held based on time.
Here are the time/sales in question:
$0.34 100 OTO 15:45:30
$0.291 17,258 OTO 15:42:39
$0.32 300 OTO 14:52:02
$0.328 280 OTO 14:08:57
$0.292 26,600 OTO 13:22:23
Money Flow Chart Update: "Addressing the Paper Tiger-- Candle"
Diminishing volume barely survives the seller @ $0.29 w/ a $34.00 paint to close. Creates the "paper tiger" Bullish Engulfing candle pattern that acts as a prop for the charting cheerleaders.
Money Flow TA 3 Cycle 2nd chance: Money MOMO (ChiOsc) eeked out a slight repel to keep hope alive for reversal-- still need buy volume to show up above the 8EMA. Both monthly (CMF 21) & short-term Retail (CMF 3) (#2 on chart) saved the day from a sub-0.30 close again. Short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) eeked up slightly more this session, which keeps hope alive that the seller(s) will continue to play it smart and temper further trading.
Buy volume (PVO) (#3 on chart) was a no show yet again; but as mentioned above, sellers appear patient enough to wait it out. Unfortunately drifting down could turn into death by a thousand paper cuts...
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S1) @ .434 and (S2) @ .307 (breached a 3rd time-- and more extensively -- today)-- sub-price points: .375 (Raff Regression) and .27 (Lower BB)
That should come as no surprise Vaffan-Coulo. Beginning on/about 11/23, if the share price is above ~ $0.40 you may see an increase in selling pressure as PP holders manage risk. I always attempt to calculate a % of the offering that recoups investment (so price dependent) and run it against the Float Turnover ratio at the time...
... and as cruzdelsur points out, some PP holders deemed "affiliates" will be further restricted by the trickle rule of 144.
When it gets closer to the time (assuming a Notice of Effectiveness is filed), I'll add the "zones" (price level and time) to the chart.
ok-- got it, thanks Yes I do have (long) shares.
In general:
1. The company has enough potential -vs- risk in my estimation
2. The past Private Placement (PP) deal/shares appear to have been flushed out
3. It is post Reverse Split
In short-term:
4. The new PP shares cannot be sold or hypothecated until at least the end of November
5. I detected some momo trader activity just prior to the Press Release (PR)
6. I assumed the PR spin doctors would/could make lemonade out of the lemon and that momo group(s) would push the stock
I have no problem answering this johnkenny; but what does it have to do with whether or not Spinning Top candles were correctly identified by a supposed very experienced chartist?
No apologies necessary Taylor Orion, but thanks Unfortunately, I don't think our disagreement is just a matter of opinion. Here's where I think you are now-- correct me where I am wrong.
1. Dividend Issuance: you think perhaps the company might issue a dividend within 3-6 months.
2. Private Placement: you are asserting Mr Edery has the right of first refusal to participate in future offerings.
If the above 2 points are correct, then:
1. Dividend Issuance:
a. We absolutely disagree on opinion here. I can't imagine a scenario at this stage in the company's evolution whereby they would use cash or equity to issue a dividend-- any/every surplus in either instrument is typically reinvested in company growth for several years.
b. Fact: Regardless if we disagree on issuance, ~45 million shares are available for this kind of use, which is significant.
2. Private Placement:
a. Fact: we agree that the feature of right of first refusal exists IAW the terms of his Share Purchase Agreement.
b. Fact: however, the company does not have to reserve shares for this purpose, they merely have to offer him (Mr Edery) the right to participate. So hypothetically 45 million shares could be put up for sale in a Private Placement (i.e. Reg D, Rule 506) today. If Mr Edery opts in, then a portion will be sold to him/his company based on the "Pro Rata Share" provision (at minimum). If he opts out, then that portion would be up for sale to some other investor/firm.
Neither case has anything to do with whether or not ~ 45 million shares are available for use by the company, which was-- and still is -- my assertion.
Most of our disagreement is based in facts.
ummm yea but no-- a Spinning Top is an indecision candle-- period (see same paragraph you cherry-picked from). Applying the KISS principle to stock Technical Analysis does not give one the liberty to make stuff up to fit a desired interpretation...
"... so you can begin learning something ..." I hope...
1. The 1st DOW JONES candle you circled on 9/19 wasn't a spinning top-- it was a Shooting Star and that is a reversal candle.
2. The 2nd DOW JONES candle you circled on 9/30 was indeed a spinning top-- and the epitome of an indecision candle (reversal or continuation) as the 10/1 candle confirmed a downtrend continuation.
3. The 3rd DOW JONES candle you circled on 10/2 should be considered a doji (given the scarcity of body size) and could have been a Bullish Doji Star had it not been for the length of the tail.
4. The 4th DOW JONES candle you circled on 10/6 was again indeed a spinning top-- and again the epitome of an indecision candle (reversal or continuation) as the 10/7 Black Opening Marubozu confirmed a downtrend continuation dashing the hopes presented by the White Opening Marubozu on 10/3.
They had to file a registration statement IAW the Registration Rights agreement. Next filing to BOLO for is the "EFFECT" (Notice of Effectiveness).
It would be beneficial for retail shareholders to understand what's happening with the share structure and thus what impact it will eventually have on the tradable float (which will never be locked up) IMHO
"... In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on Form S-1 and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC. ..."
http://www.sec.gov/Archives/edgar/data/1533998/000114420414057598/v389920_ex4-1.htm
Money Flow Chart Update: "Livin' on the Edge"
Low volume day survives a ~ $6k dump late afternoon w/ 5 ask slapping trades totaling ~ $6k into the close. Even though today's candle has no assigned meaning (other than being another sell candle) and the DOW Jones Industrial Average's candle is not a reversal candle, the KISS school of using made up terms and false excuses could be helping at the margins.
Money Flow TA 3 Cycle re-Disrupted: Money MOMO (ChiOsc) continues to move downward and should braid the neg-MOMO next session if volume remains below the 8EMA. Both monthly (CMF 21) & short-term Retail (CMF 3) (#2 on chart) saved the day from a sub-0.30 close. Short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) flattened out, which gives hope that sellers may be inclined to give the stock a bit of breathing room.
Buy volume (PVO) (#3 on chart) was a no show again, but neither did collapsing sell volume appear.
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S1) @ .434 and (S2) @ .307-- sub-price points: .385 (Raff Regression) and .29 (Lower BB)
Money Flow Chart Update: "Bearish Engulfing Fluff"
Gap open based on Press Release was quickly sold into. The emptiness of the PR could not stand on its own; so that, combined with no "serious" pumping, led to little movement throughout the day. End result, combined with yesterday's indecision candle, was a Bearish Engulfing pattern and a Money Flow TA chart that cuts short the up cycle. Minimum 1-2 session wait now to flush out the down cycle.
Money Flow TA 3 Cycle Buy Side Opportunity Wasted: Money MOMO (ChiOsc) continues to move downward and may braid the neg-MOMO in 1-2 sessions. Monthly retail (CMF 21) joined short-term Retail (CMF 3) (#2 on chart) in its dropping support. Both short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) reversed course (MFI 3 typically does not cut short its up cycle).
Buy volume (PVO) (#3 on chart) was a no show.
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S1) @ .434 and (S2) @ .307-- sub-price points: .395 (Raff Regression) and .31 (Lower BB)
To the OTC market, it is seen as typical fluff. Rolling into a new market is expected-- preliminary results of markets they have rolled into is anticipated...
... the stock is priced on expectations, an effective driving PR should at least hint at anticipated results.
It's a fluff PR with no metric to grab on to-- not a lot for MOMO pushers to work with...
... either that or they slept in this morning
I was sitting at .30 the past couple sessions just in case, and assuming, rumor runners would show at minimum. It seems as though they may, but it needs to be real soon or we wait another week... IMHO
(Sierraworld just ain't cuttin' it-- although the model would look good on a surfboard lol)
Flipped F Oct 24(W) 13C +19.23% in 1 daze (5min chart #msg-106742624)
Rolled VLO Oct 24(W) 47.5C (10/13 0.42 debit)
Still holding:
F shares 16.58 #msg-106378145
NOV Oct 24(W) 81C 2.22 #msg-106338566
VLO Oct 24(W) 47.5C 1.09 #msg-106448309
Money Flow Chart Update: "Riding the Fake High Wave?"
Early morning push to 0.435 set the stage to create a High Wave candlestick. Traditional TA sees this candlestick off a consolidation pattern as a hopeful sign to move higher. Money Flow TA on a 1 hour chart suggests some momo testing today off possible loading from yesterday afternoon in front of a possible momo push (but still met seller resistance).
Money Flow TA 3 Cycle Buy Side Turns to Mixed Bag: Money MOMO (ChiOsc) still moving downward but not at a great pace. Short-term Retail (CMF 3) (#2 on chart) dropped from its "power zone" (> .5) but did not collapse the price. Both short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) continue the upswing and the 50 line was crossed for "confirmation"-- good bid support was in place.
Now would be a good time for the highly anticipated buy volume (PVO) (#3 on chart) to show up.
Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S2) @ .434 and (S3) @ .307-- sub-price points: .405 (Raff Regression) and .332 (Lower BB)
Money Flow Chart Update: "Get Off the Lower Bollie Band's Lazy River Float Before It's Too Late"
If you have ever heard of the TA terms: "Bollie Pinch" or "Bollie Chute" or "Bollie Squeeze" they are referring to Bollinger Bands (BBs)-- specifically the Upper and Lower -- constriction as a foreboding of a considerable price movement...
... the bad news in this case is the direction of the movement can be predicted based on the candle's position within the BBs w/ Lower pointing to Down and Upper pointing to Up.
Money Flow TA 3 Cycle Buy Side Still Waiting: Money MOMO (ChiOsc) in danger of "braiding" w/ its negative side. Short-term Retail (CMF 3) (#2 on chart) reached its "power zone" (> .5) but has a recent history of not spending a lot of time in the zone. Both short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) continue the upswing but the 50 line needs to be crossed for "confirmation."
The problem remains buy volume (PVO) (#3 on chart)-- the 3 Cycle up movement is in danger of falling apart. Needs news catalyst and/or momo traders returning in 1-2 sessions else the downward drift on low volume will turn into Bollie Chute Puke...
... Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S2) @ .434 and (S3) @ .307-- sub-price points: .415 (Raff Regression) and .349 (Lower BB)
Let's try to simplify this Taylor Orion:
There are two (2) Conditions for share issuance:
1. In exchange for money/services-- where the company receives value in either cold hard cash or asset(s) or "labor" and in return issues shares.
2. In the form of a dividend-- where the company gives "value" back to shareholders
If the company were to do #1, they do not have to reserve any shares to "maintain the preferred shareholders' interest.
If the company were to do #2, they have to include the Preferred Shareholders to the extent of applying the "value" to the underlying common shares already reserved.
--The likelihood of #2 happening anytime soon is near 0% given they are an R&D company attempting to roll out a commercial product and "cash" is in short supply. I can't think of 1 example of a legitimate company in a similar phase of "operations" doing this.
--The likelihood of #1 happening needs to be broken down into 2 types of issuances:
a. Exchange for Services: so far this has not occurred, and it will be reflected in the 10Q's Cash Flow statement.
b. Private Placement: 3 rounds of equity financing (placements) have been executed thus far and the likelihood a 4th will be executed is greater, but aligned with "cash burn" and short-term revenue generation. The last round looks to be able to get them into late Winter/early Spring IMHO...
... so again-- to sum it all up -- DRIO has ~45 million shares to issue without requiring an increase in the Authorized Shares, which is significant
XONE [NASD] The ExOne Company
Industrial Goods | Diversified Machinery | USA
Extreme Shorted Stock (& Industry) @ ~50% of a Low Float @ < 10 Million
Assuming an open/close abv $19.17; init tgt $22.50
XONE [NASD] The ExOne Company
Industrial Goods | Diversified Machinery | USA
Extreme Shorted Stock (& Industry) @ ~50% of a Low Float @ < 10 Million
Assuming an open/close abv $19.17; init tgt $22.50
Sold POST Oct 35C -90.74% in 42 daze #msg-105792199
Still holding:
F shares 16.58 #msg-106378145
NOV Oct 24(W) 81C 2.22 #msg-106338566
VLO Oct 49.5C 0.67 #msg-106448309
Money Flow Chart Update: "Can't Slap an Imaginary (Double) Bottom"
Confirmation out of a Bullish Meeting Line pattern (#1 on chart) was thumbtack doji-nied
Money Flow TA 3 Cycle Buy Side Waiting on Volume: Money MOMO (ChiOsc) continued repelling from its negative pair. Short-term Retail (CMF 3) (#2 on chart) is about to knock on its "power zone" door (> .5) and both short-term (MFI 3) and monthly "Smart" (read: manipulative) Money (MFI 21) are on the upswing.
The problem is now volume (PVO) (#3 on chart)-- everything is prepped for a 3 Cycle up movement, but volume driver(s) is(are) missing. Needs news catalyst and/or momo traders returning soon else the downward drift on low volume will creep back in...
... Raff Regression and Fibonacci Fan replotted based on Sep 9 top and Oct 9 bottom (Oct 8 for Fib Fan). Key price areas to watch: Fibonacci pivot support (S2) @ .434 and (S3) @ .307
Taylor Orion, I am more than willing to have a civil discussion as it is an important distinction to attempt to clarify IMHO.
In order to do that, one has to understand the difference between price-based anti-dilution adjustments and stock-based anti-dilution protection. Both of which were addressed in the filing/exhibits.
Appreciate that you provided your rationale in using Section 7 of exhibit 3.1. However, this section pertains to stock based anti-dilution protection-- the nuance of referring to the price adjustment required is being incorrectly applied...
... if the company chooses to issue shares or pay cash to common shareholders (under the circumstances described in the section), then those that hold the preferreds are entitled to that same distribution. That would require a price adjustment based on stock anti-dilution protection.
There is no price-based anti dilution adjustment-- period. And a retail investor should take comfort in that fact (think toxic financiers "floor-less convertibles" or DRIO's last stock sale that had an extremely bad make whole provision)...
... however, DRIO now has roughly 45 million shares available to issue.
Duly noting that if they do issue shares, in some cases, that distribution needs to be applied to the underlying common shares of the preferred shares...