Replies to post #106797 on Cascadia Investments (CDIV)

[514]

yes ash .. and thats why it took about 3 weeks from the PR to VERT to start selling it .. he is clearly done and we move up frome here .. the proof was on level 2 .. we was slapping the ask on VERT and he was DTing all the way for 3 days ..means he had some millions .. once he left BULLS/COVER came up slapping the ask and we saw the PPS increase fast and furious .. ( good sign for this week )

[UnderR8D]

What are the basic requirements of Rule 144?
There are five basic requirements of Rule 144, although
not all requirements apply to every sale, as discussed
below:
Current public information. Specified current
information concerning the issuer must be
publicly available. See "Rule 144(c) - Current
Public Information Requirement."
Holding period. A six-month holding period is
required for "restricted securities" of an issuer
that has been a reporting company for at least 90
days. A one-year holding period is required for
"restricted securities" of a non-reporting
company. See "Rule 144(d) - Holding Period
Requirement" and "What are restricted
securities?"
Volume limitation. The amount of securities that
can be sold in any three-month period for listed
companies is limited to the greater of (i) one
percent of the shares or other units of that class
outstanding, or (ii) the average weekly trading
volume during the four calendar weeks
preceding the filing of a Form 144, or if no such
notice is required, the date of receipt of the order
to execute the transaction. The amount of
securities that can be sold in any three-month period for companies with over-the-counter, or
OTC, securities is limited to one percent of the
shares or other units of that class outstanding.
See "Rule 144(e) - Limitation on Amount of
Securities Sold." Rule 144 also has an alternative
volume limit of up to 10% of the tranche (or
class) outstanding for debt securities.
Manner of sale. Equity securities (but not debt
securities) must be sold in unsolicited "brokers'
transactions," directly to "market makers," or in
"riskless principal transactions." See "Rule 144(f)
and (g) - Manner of Sale Requirements."
Notice of sale. The seller must file a Form 144 with
the SEC at the time the sell order is placed with
the broker if the seller is an affiliate and intends
to sell during any three-month period more than
5,000 shares or securities with a value in excess of
$50,000. See Rule 144(h).

[finefinesuperfine]

I'm going to throw my .02 into this discussion.

First, we know the float has increased by 5.5 million shares. The float is the free trading shares that can be sold without restriction. The company issued a PR on March 25, stating that they would be increasing the float by these 5.5 million shares. To me, it's great news that the company PR'ed this, and didn't just do it blindly -- shows a high level of trustworthiness from CDIV.

Second, Ash is right -- just because these shares are in the float doesn't mean they have been sold yet. It just means the company has the ability to sell them.

But with that said, I agree with Joel in this discussion that the company probably has sold some of them, and frankly, I HOPE that they have. Here is why:

1) apparently as part of the up-listing process the company needs money. Selling shares is how they get it.

2) we've had a significant drop in PPS over the last few days, combined with the arrival of a new MM (VERT) doing a lot of selling. logic dictates that this is not a retail seller, because of the large number of shares sold and the unusual market maker. I suppose it could be that NITE and ETMM recruited another market maker to come in and do some shorting, but I really hope that's not the case. If they were able to short us down almost 50% using this trick, it means that we've got a much harder fight in front of us than we think.

3) I tend to believe in the principle of occam's razor -- the simplest solution is usually the correct one. Here, the company PRs a float increase, the float increases, a new MM arrives and does a lot of selling. The simplest solution is that the Company sold some of its shares. And to me, that's just fine.

Not only is this the simplest solution, but it leads to the best end result:

a) the company now has money it needs to complete the up-listing process

b) the company makes some money, which i believe it is entitled to do, and which encourages them to stick with the plan and to not convert shares unnecessarily down the line

c) there are now less shares that the company has at its disposal to sell during the squeeze

d) those shares that were sold by the company are now in the hands of Team Monk members, who will handle them responsibly.

These are my conclusions about the last few days of trading. No one likes to see red days, least of all me. But that doesn't mean that some good can't come out of those days. I doubt that the company has sold all of the 5.5 million shares that are added to the float, but I hope that I am correct and they have sold 2-3 million over the last few days, and that they are holding the remaining 2-3 million for the squeeze. IMO that would be the best case scenario for our team.

Again, just my two cents.