HPIL Holdings (HPIL)

[shotsky]

About the noteholders. They don't want stock, their business is lending money. As soon as a note converts to stock, the noteholders ALWAYS immediately dump it on the market, so they don't LOSE money by waiting. At that point, supply exceeds demand, and the price drops. It ALWAYS happens that way, and they know it.
So when you see the market going down, as it is now, and we KNOW a note has converted, then you also know there is more supply than demand, and in order for the noteholder to liquidate, they will take less and less for their shares. That is why the noteholder terms are so good - they get the shares well below market, and sell at market, and end up with their original cash back plus some profit, while we sit here and lose money.
The problem is that noteholders don't give a shit about the stock, and companies that use convertible notes to do business nearly always convert their notes, because they don't make enough money to keep the doors open - thus borrowing, and they generally can't pay the notes off except by converting to shares.
We are told there are no notes left, so that's good. But if HPIL can't keep the doors open without a cash infusion, another note could be in the future. Some of these plays must start paying off, just to stay in business. I know the CEO has deep pockets, but even he can only infuse money into the company by 'loaning' it officially.