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I hope you are right, but ...
Some short jumped sold off 800,000 shares @ 0.1050. But the stock picked up to 0.1069. At this point, it looks like 5 steps back, 3 steps forward. Their day is coming and I will have no sympahty for them.
James
Shorting power again.
Stock was going up until about 600,000 shares were shorted @ 0.1060. On spikes, that makes about 2.2M shares shorted. I sure look forward to when they will be squeezed. And they will, soon, very soon.
James
Hey Toro Bravo.
I have two Mexican roofers who are taking off my shingles. One can barely speak English. I could use your linguistic assistance. Too bad you aren't here. GLTY
James
Looks like we may have hit bottom.
@ 0.1089.
James
Three big short spikes
At the opening bell, there was about 600K shares shorted @ 0.1085. There was a second @ 0.1070 and a third @ 0.1064. The combined three trades made up about 1.6 million shares shorted. Very obvious shorting is still active. But if the trends continues from Friday when there was a 34% reduction in shorting, then the rest of the week we should be seeing uptrending if not more.
James
Good find King Royal - thanks for the great information!
That Roche is in negotiations wiht DCTH strengthens the argument that the RS is not expected to go through. If DCTH's BOD expected the RS to go through and solve all the company's financial problems while fattening their wallets, there would be no need for a suitor. These talks are not an absolute message to us that the RS will fail, but certainly strengthen the likelihood that the RS will not happen.
James
Sept 1 letter to shareholder
Simpson tries some wild way to explain how a reverse split will prevent dilution. She writes,
"To mitigate potential future dilution following a reverse split, we recently concluded an agreement with the majority holder of the Convertible Notes by which 90% of the outstanding debt related to the Notes will be extinguished upon shareholder approval of the reverse split proposal. Additionally, the floor price of $.05 for the remaining 10% of our Convertible Notes will be required to adjust by NASDAQ with the effected reverse stock split ratio to a minimum of $1.00."
https://finance.yahoo.com/news/delcath-issues-letter-stockholders-141108073.html
Her irrelevant method to "mitigate further potential future dilution" is to get rid of debt in bold. That should persuade shareholders from selling and voting YES? What a con! The retiring of debt will have nothing to do with shareholder value when the stock value is diluted by 200X.
James
Metal Jockey - I thought the same
I thought he was retired and watching on the sidelines. Now this. An investor must never make a decision based on a message board as shown by this conflict of statements. Thanks for addressing this. I like your pointed observations. Non-caustic truth is always welcome in my book.
James
Shorting for the past 2 weeks
% short % naked
8/16/2017 42.6 53.63
8/17/2017 39.8 35.11
8/18/2017 39.9 43.99
8/21/2017 31.5 49.05
8/22/2017 35.3 52.4
8/23/2017 41.3 42.7
8/24/2017 41.8 48.47
8/25/2017 33.6 58.47
8/28/2017 24.1 61.59
8/29/2017 34.7 47.31
8/30/2017 37.4 57.8
8/31/2017 39.2 59.25
9/1/2017 25.9 62.48
Shorting tappering off
About 25% of all trades were shorted today, down from 34% through the week. However, the highest per cent of naked shorts took place today. 62% of all short trades were naked shorts. That is the highest in nearly a month! I wish the SEC would clamp down on that illegal activity.
If the shorting percentage of all trades continues to decline up through Sept 6, which I would expect, then the price of shares should be going up. When the RS is canceled, then the shorts will run and produce a huge squeeze as they cover. The shorts' activity is starting to fade.
James
Seems like lower support is 0.1070.
If it breaks through that (a big maybe), then it will likely get near 0.10.
James
Two FACTS I know in all this uncertainty
1) Many investors believe RS will happen by the heavy shorting.
2) Simpson implies the RS will fail by the news bulletins and the fearmongring.
Obviously, this is a major conflict in perception of DCTH's future. Simpson knows more than the short traders. She knows the tally of votes and where the RS stands. One recent post even states that from what she knows papers are being drawn up for BK (which has not been verified).
What to do? If the RS fails (which I believe), then the stock will rise substantially because shorts will cover from a failed dilution scene.
Because of what we know (above), let the shorts short the stock to death. The short spikes yesterday sent a message their heavy shorting is far from over. Buy on the dips or get out and get back in again before Sept 7.
James
Short spikes data
Price Volume of short Time of Sale
0.113 ~780,000 9:31
0.111 675,000 9:34
0.1101 375,000 9:37
0.1113 780,000 10:02
0.1102 725,000 10:07
0.1071 500,000 10:30
0.1070 550,000 10:38
0.1142 350,000 11:27
Probably 55% of it is illegal.
James
I saw several Short spikes this morning.
They were huge! And it forced the price d-o-w-n. With this force on the stocks, it is difficult to see this as an investment opportunity.
James
Have they been "scanning the landscape?"
If so, not seriously. All of a sudden the BOD presents a crisis moment of uncertain solvency. They should have thought about this long and hard and take decisive steps after the last reverse split. Now they put the whole problem, ultimately, on the backs of the shareholders. I contend the BOD has not seriously been looking for a partner or a buyout. The only answer is vote NO.
James
Excellent point!
That split ratio could be a selling point. They missed this.
James
Plain vanilla
A NO on RS benefits the shareholders - no dilution.
A YES benefits the company and BOD - it keeps it solvent but dilutes.
In all the news bulletins, there is silence as to how the shareholders are benefitted by voting YES. This cannot be overstated.
Keep it simple stupid (KISS).
If the shareholder wants to help the company, vote YES.
If the shareholder can accept being financially raped through dilution, vote NO.
There is a middle ground through partnership or buyout. The BOD has not seriously pursued this and they now have jeopardized the good of the company.
The situation is as plain as vanilla. NO benefits shareholder. YES benefits the company only.
James
I would never, ever vote for a reverse split in any company I invested. Been there and seen the awful devaluation and dilution of the stock.
$0.35 on pre-split basis
"the Company and the Note Holder shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40.0 million shares of Common Stock at an exercise price of $0.35. A final amount of $3.8 million in debt will remain outstanding until converted or redeemed in accordance with the original Convertible Note agreement. These transactions are estimated on a pre-split basis and will be subject to adjustment by the split ratio determined by its Board of Directors upon approval of the reverse split proposal."
James
If the RS is approved, likely Sept 7.
If the RS is denied by voters, it could be Sept 7. But seeing negative news is undesireable, the news could come days after Sept 7. I have seen that kind of stuff happen before.
James
Today's shorting activities
Total share volume: 38,688,010
Total short volume: 13,465,709
% of tot shares shorted: 34.8%
Legal shares shorted: 7,094,595
Naked shares shorted: 6,371,114
% of naked shorted: 47.3%
The amount of shorted shares is killing any price movement up.
Those who have shorted this stock will suffer severely as they gamble that the RS will go through (a YES). As I have documented in a previous post, I believe the shorts are wrong. So, we should be seeing an unprecedented short squeeze beginning on Sept 7 though it could begin earlier in anticipation of the failed RS approval by shareholders.
James
Hudson Bay and Rennaisance still have holdings
https://www.cnbc.com/quotes/?symbol=dcth&tab=ownership
James
Pittkid
As Tekterra pointe out, that they had to extend voting beyond yesterday logically says they didn't have the votes. Otherwise, yesterday would have closed the voting.
Is it possible that some changed their votes? I think few. Though news flashes were announced to encourage investors to switch from NO to YES, I would think nearly all stuck with their original vote. The reasons being: 1) dilution didn't work the last two times; 2) there really was never any benefit given to the shareholders why they should switch their votes, i.e. cash-back bonus, for every share you own you get 20 shares, etc.; 3) only a flake would change their mind on an important decision like this.
With the only reason to vote YES being to the benefit of the company's solvency, that is just not good enough. With shareholders diluted in their investments two times over, they will stick with a NO vote.
If I am right, watch the shorts run for cover. We will see an unprecedented squeeze coming our way.
James
That concurs with my posts.
This stock is having an extremely hard time moving up because of excessive shorting. Naked shorting is more prevalent than typically shorting. The shorting scenario is staggering. If something happens in which the shorted shares have to quickly cover, we will see a squeeze few have seen. This stock could easily go to $1 under those conditions. The question is, "Will it happen and under what circumstances?"
James
Good stuff Tekterra.
Naked shorting, shorting from shares that are NOT borrowed, is illegal. Any illegalities are dealt with by the SEC. That is one of their jobs. I am convinced all this downward sell pressure is coming from shorts, whether legal or illegal (naked).
Thanks for summarizing where it all stands. You're thinking that the BOD is trying to increase value and run stock up to 0.35 at least is interesting. Because of the great suppression of the price by shorts, I am not convinced we will see 0.35 anytime soon. I see that price waved about in their news flashes to incentivize further investments in the company.
James
Price suppressed by shorts.
Look at the data.
http://nakedshortreport.com/?index=DCTH
Look at the past four days of trading:
Date Volume Short Naked Short % Naked Tot. Short
Aug 28 48.4M 4.5M 7.2M 61% 11.7M
Aug 25 21.6M 3.0M 4.2M 58% 7.2M
Aug 24 39.3M 8.5M 8.0M 49% 16.5M
Aug 23 36.7M 8.7M 6.5M 43% 15.2M
An astounding level of illegal activity (naked shorting) is going on with this stock. I watch LII and I can see the shorts controlling the pricing. The SEC needs to be notified about this. In the mean time, with so much shorting going on, the only hope to see the price rise significanntly is for a short squeeze. Something must trigger that!
If this stock was delisted, that may also be a cure for this rabid problem. I don't believe OTCBB stocks can be shorted, though I could be wrong on that.
Shorts are just killing this stock valuation!
James
Rest assured, this company will not go broke.
There is too much upside in profits and medical breakthroughs for that to happen. NO is the only way to help shareholders, like me.
James
$0.35 ...
I have heard that price per share floating around quite a bit as a target to sell for some shareholders. Now it surfaces in the latest news article,
"the Company and the Note Holder shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40.0 million shares of Common Stock at an exercise price of $0.35."
Reading further, this is a pre-split price per share that will be exercised for 40M shares. The inference is that this stock is worth at least $0.35/share. So no investor on the side is a fool for paying up to and including $0.35/share. To the "Company and the Note Holder," it is worth it.
To this I agree and far more in light of DCTH's endeavors and financials (I have seen stocks much worse yet much more pricey).
James
Yes toro bravo.
If the article was written for more than one reason, among which was to play a mind game on shareholders, then I doubt it succeeded. When the request to vote was first issued, likely most all knew how they would vote then.
James
If I could vote, I would vote NO on RS.
I came late in the game, which is what it is turning out to be.
James
Great news, but ...
... what follows in the article is this,
"We have commenced a global Phase 3 FOCUS clinical trial for Patients with Hepatic Dominant Ocular Melanoma (OM), and plans to initiate a Registration trial for intrahepatic cholangiocarcinoma (ICC) by the end of 2017 contingent on effecting the reverse stock split as outlined in the Company’s consent proposal. Melphalan/HDS has not been approved by the U.S. Food & Drug Administration (FDA) for sale in the U.S."
That is likely a kick in the shorts courtesy of Simpson to anyone who has voted NO on the RS to change their vote. If it is inserted by Simpson, it is to put anyone who votes NO on a guilt trip for not helping suffering people and have them change their vote to YES.
James
CORRECTION on my last post
The Company and the Note Holder are buying 40M shares NOT $40M worth of shares.
James
Tekterra - "floor price?"
It states, "the Company and the Note Holder shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40.0 million shares of Common Stock at an exercise price of $0.35."
I have never heard of a "floor price" before. What is that? To my knowledge, this set price means that because the Company and the Note Holder are buying Common Stock then a price must be affixed to the shares being purchased in being an actual trade though aside from the public market.
This $0.35 does not infer (and I am not saying you are, at all) that the price of the stock is anticipated to go to $0.35 per share. As I stated earlier, seeing the Company and the Note Holder are buying up the shares, this would leave the outstanding share count unaltered. It would mean common traders woule have 40M shares less they could purchase because, if the RS goes through, those shares would have already been bought up.
James
Tekterra - a quote from the news bulletin
It states, "the Company and the Note Holder shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40.0 million shares of Common Stock at an exercise price of $0.35."
The Company as well as the Noteholder are buying up $40M worth of shares.
James
I understand it differenty.
If, according to their statement, "shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40 million shares of Common Stock at an exercise price of $0.35," the company will own 40M shares of Common Stock. That 40M which originally was a part of the outstandinng shares is now bought up and is not tradeable. In actuality, the outstanding shares does not change in number. I understand 40M of the 499M are now in possession of the company. This in turn would reduce the float by 40M.
James
The transacation is unclear.
The news states, "the Company and the Note Holder shall exchange $2.4 million of the remaining Convertible Notes for new warrants to purchase 40.0 million shares of Common Stock at an exercise price of $0.35."
The company and note holder will buy back 40M shares @ 0.35. I got that. But what does that mean to investors on the sidelines and shareholders. It means the company and noteholder will spend $14M in buying back shares. That reduces the outstanding shares and makes each existing share more valuable, a little bit. So what. That lessens the dilution? I think the BOD wants us to believe so.
It does NOT mean that investors will get $0.35 for their shares (which I know you realize), but they might think so. Or, they might think this means the share price will suddenly go to $0.35/share.
Basically, for the investor and shareholder, the $14M investment by the company and the noteholder creates little incentive to buy more shares or to hold shares. That is my opinion the long way around.
James
Volume and price picking up!
Volume is the best it has been for an hour. If it continues, we will see strong gains today as panicky shorts cover.
James
Need a short squeeze!
Shorts are having a field day with this stock.
http://nakedshortreport.com/?index=DCTH
Naked shorts own 58% of shorting, a terrible lack of control. Total shorting is 7.2M out of the day's trading activity of 21.3M.
When the shorts are forced to cover, watch out! This thing will fly! And that really could happen at any time. When investors on the sidelines become fully convinced the RS will not happen, up she goes.
James
No true. Stock is up 4%+.
It continues to try to break through 0.1300. It has just broken through it then retreated. We need more buying pressure. That we are basically flat-lined right now once again tells me the investors are not sure what to do with the news today and what lies ahead in just over a week.
I believe the 40M buyback of shares @ 0.35 the investors got excited about but didn't understand the terms. The news content definitely lays out a wonderful future for the company if RS goes through but delistment if no RS. Any negative news shoos away investors. It's just the way it is.
After investors digest the latest news, they will probably be excited about NO reverse split coming and the price will rise. That has already started (up 4%) and will likely continue through the afternoon. Daily volume has increased from Friday, so that means higher interest in DCTH.
As the week passes, volume should continnue to increase along with price. The reality of what the BoD wants and what they will not get (RS) which means no dilution for the shareholders will intensify price.
James
I agree wholeheartedly metal jockey!
This latest news is one of the last if not last effort to convince shareholders to vote YES on RS. They threw out the 0.35 which means nothing to the investor. But it sounds good.
James
Why days before Sept 7?
James