FYI O/S 325m Posted by: Art2Gecko
In reply to: None Date:12/15/2006 2:04:02 PM
Post #of 6481
OK, talked to Flannery, here's the deal..
Seems CTXI still had $150K in noteholders left over from before he took over. He issued 75MM shares this week to take care of that. Nothing he could do legally about that. Had to do it. Late last week he modified the share structure at the OK SOS to 1.9B authorized (to take care of these notes, and potential future acquisitions) So Right now the structure is as follows.
1.9B authorized
325MM Outstanding
It seems a good deal of this selling started last week, days before he actually issued the 75MM shares to the noteholders, so it seems someome knew they were coming and started shorting like crazy, and have been throughout this dilution period. This mixed with tax-loss selling and general confusion as to why it kept dropping contributed to the ridiculous beating this stock has taken over the last 2 weeks.
It seems we've just about taken care of this 75MM share addition here in this last week, and that should be that. No more dilution on the horizon according to Jeff. He's as frustrated as most (well not ME! lol) that he had to do this, but it was just part of the condition of the shell he took over.
Anyway, He said that he has 2 more BIG PR's (the last one was just a minor one according to him) that he's holding onto. He was waiting for this selling pressure to play out so that the PRs had maximum effect. We should see one next week, then one more either the next week, or probably first week in January.
So as it sits this is the situation.
OS 325MM shares. 75MM dilution done, or about done, Good short postion built up here the last couple weeks, tax loss sellers about all out. - Selling pressure should be drying up pretty much after today.
Next week should see some massive buying as we get a substantive PR, Retail loading for January, and Shorts covering
****CURRENT MARKET CAP only $487,500 - ridiculous for a company working on closing that distribution deal with SUDAN, and these 2 bigger PRS on the way in the next week or two.*****
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