My initial reaction is that they likely had such a low cost basis on their common that any selling still registered a healthy profit no matter what level they were sold at. Now, that being common knowledge, their next move would be to leverage this position further through puts. So....they by a ton, sell their existing common to virtually create their own market and make a fortune on their leveraged positions, while still profiting on the shares sold. IMO, They rationalized this move by assuming worst case scenario, they profit from the common on the way down, and should it not go low enough to effectively profit from the options, they could exercise their right to buy those shares at a discounted rate, and fill up on shares that were cheaper than the prior SP and still not have to open their books (assuming this number was below the threshold set by the SEC) and make money on the ride back up, and still be court side for the presumed 40 hold of a $5 stock price to attain the shares in escrow. No matter how you cut it, this would multiply their ROI juxtaposed to simply holding. This is all assumption on my part. Wish I had the kind of cash to legally created my own market (and ATM)
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