Freedom69 and justinbailey, if you care to say, what/who do you surmise is behind the most recent (last couple weeks) dilution? BBRW issuing more shares, note holders converting/selling, or a combination thereof?
If I'm BBRW mgmt, knowing that the majority of 1.5 bil (as of 3/31) convertible debt can be converted/sold at the noteholders' discretion, I'd want to see the pace of conversions be as quick as possible. Reason being, as others have suggested, that BBRW receives maximum benefit from a buyback when share price is depressed as much as possible.
Given the amount of apparent conversions that have happened above 3/31 share prices (closed at $0.0030 that day), and the variable nature of the conversions (meaning that notes converted at PPS above 0.0030 results in fewer shares for the dollar), posit that the max new shares resulting from the notes as of 3/31 is some degree lower than 1.5 bil.
If noteholders, who I presume have more exhaustive access to financial records and BBRW mgmt than we do, are choosing to convert notes now, despite the possibility of more shares at lower prices, does that not imply that we are approaching the floor? Or at least terminal velocity of noteholder-based dilution?
JB, also interested in your comment earlier that driving down the PPS as much as possible to maximize buyback effect is not in the interest of the shareholders -- can you please help me understand? It strikes me as potentially illegal if BBRW is playing an active role in it, but I suppose my thought is, for those of us resigned to ride or die here, aren't we aligned on that strategy? Through that lens, all the PRs/mini-pumps can be viewed as a defensive strategy: play chicken with the noteholders, and force them to make hard decisions to convert at a higher PPS, thereby lessening ultimate dilutive conversions (in terms of # of shares).
I'm also the same dude whose strident written defense of BBRW's prospects was followed by a 17.5% single-day drop, so suffice to say there's some margin for error in my analysis and lines of thinking, hah.
