The action today looked like to me that BMAK was caught off guard. I know full good and well that conversion dealers will short against the box with conversion shares, then cover lower. They do not own the shares though, their clients (toxic lender/s) are the owners of the shares. Whatever is shorted against the box must be bought back and then liquidated so that the dealer can give the lender his money.
BMAK has been on the bid an awful lot lately and he was there all day today. What I say are theories so take them as that but it is possible BMAK is caught short and he thought he would be getting more conversion shares but he isn't. If read between the lines the PR today pretty much says so. Pretty hard to cancel a planned authorized share increase unless the need for the inventory in the treasury was no longer needed which then means no more issuance for conversions. If BMAK was not expecting this and has a short position open then he could be in trouble, especially if his inventory is dried up. Here are the reasons I believe he might be caught short.
1) He is always on the bid
2) This afternoon an attempt was made to knock this back below 0019 because that is the key to momo. It is the 20 day moving average. The attempt to squelch the momo (which he was a part of ) failed.
3) At around 3:45 or so, something like that after the attempted attack to bring the pps back below the 20dma there was a large amount of buying hapening. 22s got taken out fast. 22s were retail. While 22s were taken out BMAK was at 23. Immediately once 22s were taken out on the ask (20s were on the bid and BMAK was there) he jumps down to 21 on the ask. One tiny hit for 1000 shares, yes 2 whopping dollars makes him back off and move. That looked like an attempt to slow things down. He has no shares though if a tiny 1000 share slap pushes him around. I personally believe he needs dumps into the bids, he needs shares and he needs momo to be killed. I expect for him to act deceiving and desperate. The 20 day held easily so BMAK might really have issues now. Not guaranteeing anything though. The battle pretty much just started. BMAK has a chance to wiggle out if retail dumps into him. Also from the action it is possible that CDEL might be caught short as well, but I don't think nearly as bad. For those that don't know CDEL on here has been doing retail and it seems conversions too.
AI
