kcmillpe by: MST_2000 10/12/01 02:07 am Msg: 139982 of 140017
Actually, I think I can answer this one . . . because I was the person who asked in the Q & A what happened with the Jameson put, why the trade occured at .265 (when that price did not correlate to the Jameson pricing formula), and to review the sequence of events -- which gave rise to that particular disclosure. To my recollection, what they said was this: 1. The Jameson put was ready to go on 9/12 with buyer(s) ready to take a placement of the entire 2+ Million share block for 52 cents; 2. The buyers backed out of the .52 placement when the market reopened a week later; 3. ASTN dropped 10 cents the day after the markets reopened into the mid-30's, because of two days of zero volume, the severe market reaction generally, and concern over how eVWAP would fare going forward; 4. This decline, with the buyer backing out at .52, meant the put had to take place at a lower price and a block buyer(s) had to be found for the additional stock or the stock might decline far more due to open market selling; 5. Fred's relatives were among the folks who stepped up to pick up the 2.3 Million extra shares that had to be issued when original placement collapsed to the tune of 1.1 Million shares at .32 (children and cousins). 6. The Put went down at .265. If you remember, on that day a 2.3 MM share block printed for .30, a 1.1 MM share block printed for .32, and a 700-800K share block also printed for .32; 7. Art basically said that getting the put done in a single negotiated block at 26.5 cents was the better of two bad alternatives they were stuck with after 9/11. End of story.
The WTC involved unthinkable horror and personal tragedy much more profound than its effect on ASTN or the other businesses that were hurt by this. And for ASTN, the stock was already hurting for reasons having absolutely nothing to do with the WTC attack -- but being honest about it, the WTC attack didn't do us any favors here either.
The devaluation of ASTN stock may be irreversible on some level (as in it's hard to imagine that we'll be seeing 10 anytime soon) and there are a lot of disillusioned ASTN investors, but there are still those of us (including among the disillusioned) who invested in a company and who still think the company has the potential to succeed, despite its flaws and problems, and the propaganda of its harshest critics, and recover a good part of its former stock price. Those of us who think that way -- who think the company is going to make it -- and who can afford to buy more, are still adding at these price levels. If we're right, we've improved our position considerably . . . and if we're wrong, the additional risk is small compared to our original investment and we can afford to lose it (and have factored in that possiblity along with the .28 stock price).
There are a lot of things that can still go right for this company, as speculative as it is at this point -- starting with more volume from more customers, more committers, and more matching sessions . . . to raising fresh capital and liquidity with strategic partners, and other initiatives. . And, lest I be accused of not admitting the possibility of a negative outcome, it is also possible for more bad things to happen, from delisting to war.
By the way, I share the view that the Uchimoto and Bacci purchases were awfully small, and can appreciate why it offends stockholders who have invested a 100 times that amount (and have lost a ton of money at this point) that insiders are not buying the stock more aggressively. But while we are criticizing them, let it also be noted that Fred said that his children and cousins bought 1.1 Million shares of ASTN at .32 a few weeks ago, and, well, that does say something.
By the way, kc, I really like your posts -- thanks for bringing fresh perspective to this place.
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