AI
Thursday, June 05, 2008 11:50:17 PM
as i understand it, the shares are restricted under rule 144 for 6 months (this is due to rule changes to 144 that became effective on 2/15/08), but when a registration statement is filed they become free trading immediately. this could probably occur as soon as three months from now, or possibly 6 months -- it's really a matter of how long it takes them to file it. jmho, based on my discussion with management.
fwiw, management sees this as very bullish, that some of these shares will be available down the road, simply because there are a lot more institutional investors who didn't get into the PP who would like to buy shares in the future. right now the float is not big enough for any size to be traded, and so some who want large positions (millions of shares) will get their chance to participate if any of the PP shares are monetized.
i think it should be stressed that we don't need to worry about the impact of them selling shares. imo this will be done out of market, for instance with AH prints of large blocks, so as to not affect the chart.
when you think about it, anyone who was invited into this deal by DR has a responsibility to others in the stock not to hurt the share price when they take their exits. otherwise, they couldn't expect to be included in future deals. in other words, you don't "bite the hand that feeds".
we've been accustomed to the stock trading in more chaotic swings in the past, back when the float was only 6 or 7M. now it's about 4X that size, and by the time some of that private placment is in the mix, it may be near double that size or more. as that float increases, access for big fish is improved, and that will help make the stock very stable down the road.
this liquidity is exactly what we want and need in a big board stock. jmho.
fwiw, management sees this as very bullish, that some of these shares will be available down the road, simply because there are a lot more institutional investors who didn't get into the PP who would like to buy shares in the future. right now the float is not big enough for any size to be traded, and so some who want large positions (millions of shares) will get their chance to participate if any of the PP shares are monetized.
i think it should be stressed that we don't need to worry about the impact of them selling shares. imo this will be done out of market, for instance with AH prints of large blocks, so as to not affect the chart.
when you think about it, anyone who was invited into this deal by DR has a responsibility to others in the stock not to hurt the share price when they take their exits. otherwise, they couldn't expect to be included in future deals. in other words, you don't "bite the hand that feeds".
we've been accustomed to the stock trading in more chaotic swings in the past, back when the float was only 6 or 7M. now it's about 4X that size, and by the time some of that private placment is in the mix, it may be near double that size or more. as that float increases, access for big fish is improved, and that will help make the stock very stable down the road.
this liquidity is exactly what we want and need in a big board stock. jmho.
