HC, first, as I mentioned once before, we can see that your $1.24 figure is a nifty little scare tactic that you keep repeating to drive fear into the readers here. The fact remains their initial purchase was at $1.69 but you insist on adding their sign-on bonus of 680K-ish shares to make Titan look weak at $1.24. All subsequent buys are at $1.88 and are not at their discretion, it is up to Titan as to when and how many shares Aspire is contractually obligated to buy.
If Aspire was dumping shares for short-term profits, they would knowingly be collapsing the PPS while still having an obligation to buy at $1.88 whenever Mr. McNally opts for them to do so. Why do you think they want to jeopardize their future in this fashion? You keep saying short term profits, but the long term loss on the next 20M shares would be much greater than those short term profits on 2.4M shares. Is there a logical rationale/tax strategy that actually supports this theory of yours? Please show the math and include the 20M shares in the future!
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So, in terms of taxes...say Aspire is playing the game of dump some and then buy some (support it) / dump sum and then buy some (support it).
So follow me and please chime in / share your thoughts so we can ALL better understand 1 firm playing both sides, ok ?
So, we know their cost basis is $1.24 USD....we also know that anything that they dump is at a short-term gain for now. Obviously they will chose FIFO method for taxes IMO. So, am I correct that this will cause the PPS to decline over time ? I mean how can it not ? We don't know the rate of the decline as there are other factors in play as well but don't we know that absent of big news - the trend will be a declining PPS over the next several weeks ?
They (assuming FIFO) dump the first shares received... thing is when they eat through that initial 2.41M gift then they can't change their tax method folks. So then the shares they are buying have a much higher cost basis...so how do they profit from selling those lots then ? I am just trying to understand
Am I wrong that once those 2.41M shares are used up and sold (over time) that things get dicey for ole Aspire ? TIA
