Nice wrap. I agree with nearly all of your perceptions and trend-line expectations for DSGT.
Been playing pinkies too long to agree with you on this one though: "The company can't dilute or sell directly into the market".
Other than how MMs manipulate trade with their 'on the shelf' load of a company's shares to mix in with retail trade action, the company is the ONLY ONE that dilutes.
Only the company can negotiate terms of the notes or arrangements with brokers to issue outstanding shares. Without the company generating these arrangements (obviously to obtain cash for operational needs [won't mention other needs!]), there would be no O/S or dilution. The company is totally responsible for the degree of dilution (we are not talking ghost shares). Don't kid yourself, they have an A/S for a reason - to use it in the 'best' interests of the company.
Sure, there are rules. But the fact is, there has to be someone enforcing those rules in a decisive and timely manner. THAT IS NOT HAPPENING IN THE LAND OF PINK.
In addition rules are VERY pliable. Gray! Room to circumvent the 'traditional understanding of the applicable rule'... for a reason oftentimes NOT meant to favor the retail shareholder. It is business man!
So I will say it again: Where there is a will, there is a means. Notes are NOT the only means the company has to obtain cash in issuing new shares.
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