I poked CANT with a stick. Why? I wanted to see how they would react, i.e. what would the short seller do? They immediately dropped IHCH Bid to .071 to cover the short sales and have stuck there since my post.
Guess what? That's sitting right on top of the 7 cent buyout. I did it to see if they would drop back all the way to .06, where they originally were covering before the 10-K announcement and the revelation of initial FY2012 Managed Care approval for $60M. I wanted to see if Chaudhuri was firm on the 7 cents offer to his partners. Note, I've never stated they would exercise their warrants to sell above .07. Like any hedge (if it is them), they are using the warrants as margin for short selling. I did mention that folks should watch the FINRA REG SHO for daily shorting a few months back. Have they moved to using other Market Makers? Probably.... and (IMO) the usual suspect is on the play. Why would anyone want to buy into a hedge's short selling on pump?
I'm not wrong about the valuation and no one has offered any justification for market cap above the publicly stated value of $23 Million of the business at best (no debt). I'm the only poster that has offered formula around the SEC registered buyout and how 7 cents works to resolve debt at 2x value. If it weren't a buyout play with dilutive warrants, I'd be the first person to suggest 9 cents value with potential debt resolution. However, the problems with substantial admissions decline might make even that number risky (IMO).
With the new QAF Bill dropping hospital payments to the bottom of a new priority scheme, there is now direct evidence of low to no QAF money in 2014 and beyond. Read the Bill folks. The paradigm change with Obamacare and the State buying Insurance for kids and other new Medicaid expanded eligible participants is where the money will be primarily spent by the State. The hospitals drop to lowest priority in the Bill. Read the Bill. QAF is a Medicaid matching funds program for the State to get money from the Feds. How they spend the money is CHANGING in 2014, i.e. money is redirected to Obamacare priorities.
(IMO) There is opportunity to close the buyout deal with the FY2012 Managed Care payment coming and closure might coincide with payment date (sufficient cash on the books).
