Orangeman, I think it would all depend on whether he announced a buyback. As I've said, I'm no expert on what must be announced, but if a buyback can be done without an announcement, then Fayiz might be able to buy back most of the shares at nearly current price if he did it in a stealth mode.
I know on a Nasdaq stock there are limits as to how much can be bought each day, and when you can buy, but I don't know about the Pinks.
Today we traded just short of 10 million shares, I believe the Nasdaq rules prevent a company from buying more than 10% of the daily volume, and I don't believe they can buy in the last half hour. If those rules applied, today the company could have bought nearly a million shares for just under $2500. If they could continue to buy at that rate it would take over three years to buy back a billion shares, and if the stock price didn't appreciate it would cost $2.5 million.
I don't believe it will happen this way.
Fayiz placed billions of shares when he needed to raise cash, and he did so without informing investors until the placement was completed. I suspect that he still knows where those shares are, and if he made a suitable offer he could buy most of them back. What would be a fair price, perhaps something like $4 million for a billion shares. As I see it that would be enough money to give the share buyers a healthy profit, and on announcing it had happened the stock would almost certainly rise to that level, or higher. The question is, does Fayiz have $4, $8, $12, or $16 million to buy back 1, 2, 3, or 4 billion shares. If he has enough to buy back 2 billion, I think he should do it. Once he announces it and gives the market a little time to appreciate it, I have a feeling he'll be able to issue a few hundred million shares and get all his money back.
The key is having those millions of dollars in the first place, if the company is truly selling all the product we believe it is, the money should be available even after the acquisition of Hybrid. We all need to remember that Fayiz originally sold all those shares in anticipation of buying VD, while he's bought Hybrid, hopefully he still has some of those funds remaining. At some point he may want to take another run at VD, but I think he'd have a much better chance if the stock were priced above a penny. He could do that if the outstanding shares comes down and we have audited income.
Gary
