The MaryJane Group Inc. (fka MJMJ)

[Sgreg]

Two recent filings show two lenders (Note converters) received about 37 mil shares each. Note converters have to hire someone to do their converting of shares so they have to hire an OTC dealer. VFIN BKRT BMAK VNDM are the main 4 dealers that take care of conversions. These dealers will short against the box with the shares multiple times a day as well while also converting. Those large avg trades during the day and T trades is most likely the conversion dealer covering (getting their client's shares back). The dealer's job though is to get the best profit possible for their client. At the same time though why not short and make some profit for themselves too. I know I would.

These stocks get ripped to shreds by note conversion because there are actually 2 things hitting the pps. Selling shares to market and the constant shorting against the box and covering lower. Best thing for traders to do is read filings and loan terms and know what and when something is going to convert. Then also use math. Make sure to figure out a good estimate of when conversions might end. Remember to factor in discount rates and look back periods. In the case of the 2 lenders that converted recently (Typenex and TJC Investments) volume has been huge this week in this stock. A decent rule of thumb is to assume maybe 1/3 of the daily volume is conversions when conversions are happening. A lot of times these companies are not fully reporting so you have to get the look back period and discount rate to then figure out how many shares the lender received. With MJMJ they report it with those 13gs those filings tell you how many shares. Only problem is that the converter can't have 10 percent or more of the company's shares at a time so the 13g could only be a partial of what is to be converted. It is best to read filings and balance sheets and loan terms and then using math figuring out a rough estimate of total shares.

The math isn't that difficult just remember to factor in look back periods and discount rates. This stock here has been having monster volume. This is great as it ends the conversions sooner. I would have to agree with the Rainmaker and say that there is a good likelihood that current conversions should end very soon and it is possible even that they pretty much were finished off by close. I saw some questions on here concerning some of the things I just covered so I hope it helps to understand. Good luck.