Replies to post #233480 on Bebida Beverage Company (BBDA)

[WhiteFish]

I don't say BW dumps, but he sure dilutes! I'm also pretty sure the people saying BW dumps daily understand it is not actually BW, but it is BW's act of dilution that causes the daily dumps.

[Whiplash_Investor]

Now, I thought if BW was dumping shares, it would be listed as an inside trade. Tell me if I am wrong or how people can see that its BW dumping otherwise.

There's only one way that BW can trade in the open market directly through a broker and that is if he personally owns shares. As best can be deduced from history and current information, BW owns no common shares at all. He does own 5M preferred shares that have not been converted. Hence, there's no way BW is selling any personal shares.

The shares issued by the company must be sold to an MM (at a healthy discount) or be issued as restricted or unrestricted shares in payment to some vendors for services rendered. BW cannot legally sell (or buy) company shares into the open market. He likely issues a large block monthly to an MM (could well be VFIN, though no proof, but it is their forte, so reasonable to assume they could be the MM). The MM then sells those shares over the month in whatever quantities/timing they wish. VFIN handles more than one customer, so tough to say when they sell or buy, who it's for. Usually, the shares from all sources to sell are mixed in a pot called their inventory.

So, in no way is BW dumping shares daily. MMs and vendors do that. But BW is the source of some of the volume as the OS has risen by 551M over the past 14 months (a whole lot better than the 1.9B sold the 15 months before that). On any given day, it is impossible to determine which, if any, originally came from BW.

Does that help?