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Re: gaboy47 post# 23818

Friday, 10/23/2009 1:35:10 PM

Friday, October 23, 2009 1:35:10 PM

Post# of 30387
Gaboy wrote,
"Anyway, I just can find a logical explanation as to why Smithline would keep the price at .14/share when he could run it up to .28/share raise twice as much money and pay the loan off twice as fast. Or he could run it up to .42/share and raise three times as much money and pay the load off in a third of the time."

I could be off base, but here is my understanding of the trading that has been discussed.
Smithline can convert the loan to shares and make a profit if the shares can be sold for 14 cents or more. On the last share price rise to 29 cents, Smithline probably sold as many shares as possible but the selling overwhelmed the demand and pushed the share price back down. Smithline probably stopped the selling at 14 cents. So it isn't that he wants to keep the share price down but that the selling eventually pushes the price down. If there were significant good news then the demand to buy the stock could push the stock price high enough to allow Smithline to convert all of the loan and make a profit selling the shares.
I think Smithline converts the shares at 14 cents so selling the shares at a higher price does not mean the loan is reduced faster. It means Smithline makes more profit.
mcd


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