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Boiler_Master

02/18/24 12:18 PM

#50346 RE: lflhdy #50345

You're thinking about it from a daytrader's perspective. #1 They're looking at multiple 1M buys over this year, not just one buy and timing it perfectly around the 10k or other news. #2 they do this for a living. They already know what % profit they can expect from the deal. They would not have negotiated and agreed to these terms if the risk were so high that they need to tank the share price 50% and hold it that low all year to feel comfortable purchasing their measly 1M share buys. Try to think about it from their perspective, a business not a stock trader.

Boiler_Master

02/18/24 12:28 PM

#50347 RE: lflhdy #50345

Also, if they were afraid of the higher share price, wouldn't they need a bigger discount if the SP rises instead of a smaller discount? Above $2 their discount drops to only 25% instead of I creasing to 35%. That's because at $2 buying and reselling 1M shares would potentially make them 500k profit. That sounds alot better than the measly 45k profit they can make buying and reselling 1M at .15 this is the kind of stuff you learn to understand in business school. Think like a business would, not a retail daytrader speculating on what the price "might" do next week even tho it's an agreement that will affect them over the rest of the year. Making decisions on these kinds of deals with only next week/month in mind would be ignorant.