First of all, I didn't know that it took special accreditation to be able to participate in a pink sheet private placement. I have been under the impression that it just takes a check book, but correct me if I am wrong with legal documents please. Private placements are modis operandi for public companies during start-up.
Secondly, from a fundamental stand point, if they did sell into the Katrina spike, selling into it was perhaps the best business move these boys have made yet. I also believe that they did. I feel so bad for the longs who bought into the spike and have been trapped here for 2 years. That really sucks; there's no polite way to say it. But this is business and business can be ruthless, and selling shares into that spike was a huge capital infusion that allowed this cash strapped pinky to really ramp up at least pit production. The spike was also fundamentally non-sustainable. It wasn't tied to anything but raw emotion that was certain to wane as it did.
Third, just because they sold during the Katrina spike doesn't mean that they were selling during the buy back. The first buy back was amended in August 2005 and that's the last we heard of it. If and when it is demonstrated that they were selling into the open market during a buy back, I will personally sell all of my shares and move on to other investments. I don't like being manipulated. But I will not sell on rumor or would-be missed expectations given in PR's. There is still potential here in this stock.
Ren
PS Feel free to stick around...just play nice, okay? ;)
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
www.younglife.org
