Howdy, stox
Thank you so much for your recent postings. It's always great to hear from you.
News of a controlled buy-in represents a fresh turn of events, and begs the question as to why management would agree to it. On the one hand, it suggests that the SEC may have found "off-setting fouls," and brokered this deal as the option which represented the least amount of damage. You've reiterated that the soon to be released financials will be in-line with expectations expressed in PR's and previous filings. However, with Sarbox, the SEC may have discovered accounting errors which they could have criminalized (a common complaint by CEO's of Sarbox, and one of the reasons there are appeals pending to the legislation).
On the other hand, and more likely, management had financial incentives for agreeing to the controlled buy-in. My concern, if the company had been using cash to support the .04 pps, was how long the company could continue to do so.
More importantly, though, you tell us that this controlled buy-in is largely complete. If that proves to be accurate (and your chart indicates a major improvement in money flow starting at the beginning of November), then there are several things that can be taken from that. It would explain the assumed increase in O/S that bashers keep talking about. It would also explain a source of cash that those same people tell us we don't have. And how might that affect this quarter's financials? We could easily be talking $20 million here.
While it is disappointing to hear that a short squeeze is less likely than we've been anticipating, a controlled buy-in is still more from the SEC than what I feared it may have been from them. Do you have any idea, though, about the issue of disgorgement?
Thanks again, stox. We appreciate your efforts.
jay
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