I agree with what you just wrote that "...We had huge resistance in the 7s that took months to break through. IMO we were in the process of breaking out due to sustained buying as a result of the GM PR...."
The r/s killed that momentum. Announcement of retaining an accounting firm especially a well recognized one to conduct an audit would have sustained the momentum most likely pushing the price higher. Then announcement of an insider buy would have pushed it further along as well.
But after taking an even closer look at the proxy, the management clearly isn't interested in the current PPS being higher...Why? It goes against their pretty obvious desire to have greater control of the shares and thus decision making ability for this company whether the intent is to go private or not. A higher PPS would make it a lot lot more expensive to get enough shares to get a controlling interest.
It's not just the R/S (item 1)in the proxy, it's also the reduction of 2/3 and super majorities to simple majorities to enact decisions (4, 5, 6, 7), and the reduction of required directors (3) that support what I wrote in the preceding paragraph..
Post R/s less speculation, easier to acquire shares at discounted price without inside buys or buy back ("support") announcement triggering speculative stock runs.
Current shareholders funded the company via purchasing the toxic debt, and now that this and other debts are paid off, Ferris I guess feels he deserves a larger stake and greater control for his management to this point. Don too can buy and add to his holdings significantly post r/s and at discount without triggering a run as such inside buying likely would do (as noted above).
I guess some would say Ferris is greedy, while others would say he's shrewd, deserving or a snake.
As a current shareholder, I'm personally not willing to relinquish my investment so Ferris can have greater control. I helped fund this company, and have not yet been adequately rewarded for my commitment. This proxy and the CC with a lot of half truths just makes me feel as though I'm being screwed. Though it seems like there are more than a few current shareholders who like to bend over to pick up that proverbial bar of dropped soap.
AI
Market Data 
Markets 
