American Electric Technologies (AETI)

[learning curve]

Let’s start by being clear: he doesn’t hold 25% common.
He holds rights;
To his entire $5m investment
Plus his already received dividends
Plus 20% of any proceeds upon liquidation....before his remaining % is equally divided amongst common.

Example:
Company sells remain assets for final proceeds of $10m after closing normal costs, etc...
He chooses. All common or $5m then 25% and leaves his dividend to share common.
Based on current price he would elect $5m redemption plus participate in common.

(nOtE: I chose $10m as a 5yr cash return on assets)

Therefore in event of $10m proceeds + $4.3 existing cash = 14.3m
$5m to jch. Leaving $9.3m

The final $9.3m gets distributed to common. Without redemption 9.3m shares would be outstanding—-coincidence? $1.00 pps

Jch gets $5m + 25% of $9.3m = ~$7.2m total (~$2.2m = 23% proffered stake)+ ~500k shares (4%) of $7.1m
Common 9.3m shares would be sharing $7.1m with 9.3m outstanding = .76 share

The tape suggest everything I say is correct. I don’t do market action....I do tape.

Caveat: sometimes those that make the tape get it wrong (momentarily); sometimes I get it wrong (plenty, but less and less....)

Notes: pps rose last 2 days and currency was opposite (i don’t like this)?:?: major selling that forces increase in pps?
Most people would buy a dead dog as long as pps went up....

:reality: As I see it.
Selling can force pps to rise (areil sold 1m shares) stock went from .70 to 2.40
Management has passed every criteria I could impose at this stage in my career
Management owes stakeholders the same opportunities they gave their employees...options and liquidity
Stake holders have formally / legally given themselves liquidity

—-
Facts: it’s low float
Subject to small group of traders or hedge fund
Currently trading as etf (as I previously posted / anticipated) with exception of last 2 days...
They have assets to create back drop. The disparity between fundamentals and potential leave a vacuum of volatility.
We are trading closer to fundamental at “current” moment.


——
I don’t know what to call myself....
An active investor???....???
I try to be nimble (I missed my opportunity playing with kids to liquidate), but didn’t panic and sell once moment passed....I believed still a buy. Was waiting for what I call something...

And then “something” happened. Things changed since then and here we sit

——
I expect my kids wake....i warm milk....and a paper worth reading comes to my attention...and the sun still hasn’t risen.

——-
Based on the above and the paper I will know what to do!