Friday, October 15, 2010 12:31:46 PM
Just some thoughts I shared with the EIGH board:
What I find most interesting about this whole debacle is the price of EIGH was already .24 when the divi was announced. At that point, the stock had already appreciated significantly on huge volume. Sure, we got an additional push after the divi news, but by no means was the divi being factored in before or during the initial run-up.
Sure, some folks' dreams/hopes were shattered. I for one wont deny the CEO dropped the ball and totally screwed up investor confidence. However, i'm willing to give the guy another chance considering how well he's been handling his business up until this point. IMO, the $40M is real and there are a lot of potential outcomes that can come with this $40M that will benefit investors.
Now we need to address the volume. Some are claiming others knew of this event beforehand. Really? When EIGH fell from .40 to .13 over the last few weeks it was on miniscule volume compared to the run-up, so please tell me how anyone can claim the large shareholders were cashing out. The daily average volume for the fall from .40 => .13 was appx 750k with only one day over 1M shares.
I for one consider myself a large shareholder and i didnt sell, nor will i sell now because the divi was never the reasoning for my investment here in EIGH. The company still has a chance to redeem themselves and i'm willing to give them that chance.
And if you think yesterday was a full-blown panic sell-off, i'll suggest you go look at the daily volume for the last 11 months and let you come to your own conclusion. We traded almost 3M shares before news hit, we ended the day with 16M. 13M is hardly a panic sell-off if you consider we likely held 120M+ shares at the time of the announcement. So, worst case we probably lost about 10% of holders. Sounds more like a Cleansing than a panic.
Just my two cents ... i'm patiently awating share-buy back from company and more announcements in the near-term. Until then, Floaty will just keep locking away shares.
What I find most interesting about this whole debacle is the price of EIGH was already .24 when the divi was announced. At that point, the stock had already appreciated significantly on huge volume. Sure, we got an additional push after the divi news, but by no means was the divi being factored in before or during the initial run-up.
Sure, some folks' dreams/hopes were shattered. I for one wont deny the CEO dropped the ball and totally screwed up investor confidence. However, i'm willing to give the guy another chance considering how well he's been handling his business up until this point. IMO, the $40M is real and there are a lot of potential outcomes that can come with this $40M that will benefit investors.
Now we need to address the volume. Some are claiming others knew of this event beforehand. Really? When EIGH fell from .40 to .13 over the last few weeks it was on miniscule volume compared to the run-up, so please tell me how anyone can claim the large shareholders were cashing out. The daily average volume for the fall from .40 => .13 was appx 750k with only one day over 1M shares.
I for one consider myself a large shareholder and i didnt sell, nor will i sell now because the divi was never the reasoning for my investment here in EIGH. The company still has a chance to redeem themselves and i'm willing to give them that chance.
And if you think yesterday was a full-blown panic sell-off, i'll suggest you go look at the daily volume for the last 11 months and let you come to your own conclusion. We traded almost 3M shares before news hit, we ended the day with 16M. 13M is hardly a panic sell-off if you consider we likely held 120M+ shares at the time of the announcement. So, worst case we probably lost about 10% of holders. Sounds more like a Cleansing than a panic.
Just my two cents ... i'm patiently awating share-buy back from company and more announcements in the near-term. Until then, Floaty will just keep locking away shares.
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