the DTC holds existing shares and ...lends them out to be borrowed.
so the A/S to O/S has nothing to do with nearly all the shares held at the DTC, which we haven't known until now.
now when the MMs want to short exempt for "liquidity" say when some retailer swipes the ask in these low volume 48M days....say a 3M 2 ask swipe, they could to balance the day grab some of that DTC held shares and short exempt them to help balance their books
Most of the country’s biggest broker-dealers and banks are DTC participants. That means they deposit and hold securities at the DTC, which appear in the records of an issuer’s stock as the sole registered owner of those securities deposited at the DTC. The participants—the banks and the broker-dealers—own a proportionate interest in the aggregate shares of an issuer held at DTC. Bank X, for example, may contain a proportion of the group of shares of Stock BB held in at the DTC.
I haven't chimed in on the recent 2B 000098 trades. I'm not sure, but it makes no sense that the converters did that. I did expect the A/S to turn to O/S (now DTC as the float is probably the O/S minus the DTC)
if the converters wanted to sell they'd have sold at trip 1 on the dark pool or open exchange and gotten trip 1. unless the converters are total jerks and wanted to forgive ballas' debt at 000049....but I doubt that. might as well get the full 200,000. same with the Mms who probably own the majority of the 20B shares
why not 22B? because honestly my guess is ballas did "dump" this time, to use the term that makes him look like a bad guy. but I think what he did is a direct deal to his "golfing buddies" (aka outside investors) who bought 2B at 000098. so ballas gets instead of 100K or less debt forgiveness, gets 200,000 (minus the 2 mils) in UBQU's name, which can be spent on cotninuing to BUY INVENTORY for the expansion, the website, overhead costs, payment of whoever takes these orders boxes and ships from the condo, and with some hope, pay the converters at their normal 10% interest, etc.
a better deal for ballas.
also, why did the ask go crazy to higher than the bid with no full capitulation? I even thought we were at nobid soon. but no. yet the askers piled on with little hope of getting filled at 2. not what humans who panic typically do. more like an emotionless robot.
so I think, that's because the MMs , the algorithms, which aren't human said "oh, selling, this means UBQU going down, stock down bad, make moves to capture what 2s we can and prepare to sell as required"
so my guess is that these 2 new billion were acquired by entities outside of our usual suspects.
I think the bid hasn't increased because as I've mentioned in the past, look outside UBQU's window. everything is on fire. the S&P is threatening crash levels, the economy is deader than UBQU . at the moment most retailers who would BUY ubqu are panicking and doing capital preservation or looking at the stocks that DO squeeze at the moment. any smart trip players have already procured their UBQU and are sitting pretty. like me, should they tip this play to nobid, I'll start making 25K trip 1 buys and getting MM 00005s. until they remove PFOF and force me to pay 8 bucks a trade, why not?
well there's my thoughts. if say, a whale 500M ask slapped the 2 for a whopping 100,000 dollars. well the MMs would go "wow, big buy not from market maker from outside. stock up good! check sentiment on message boards. no, ubqu apes still hate ubqu. check general markets. no algos still say short all the stocks except apple and microsoft ....
my guess is what would happen is if in these conditions with no news no fomo, and a whale out of nowhere slap, there'd be a pause. no fomo from any of us because we all hate ballas and the stock as we are taught. and the MMs would....sell anywhere from 100k to 10M during trading to make sure we rest on 00015 or a hard 1.
and then anybody who reports about UBQU would say ballas up to his old tricks again.
