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Posted On: 12/02/2021 9:31:37 AM
Post# of 148878
Re: Buddyboy20 #111511
This explanation is incomplete and somewhat inaccurate.
Several key points and corrections:
1. Fife has been getting the shares at an average discount of about 23% to the current price. There is a formula that sets the conversion calculation. From memory, it is 85% of the lowest closing price over the prior 10 or 20 trading days.
2. Fife does care about the price and he can't "instantly" sell the shares in to the market. He carefully manages the flow of those sales, so as not to crater the price. Many careful observers believe that the influx of t-trades that happens every so often are reflections of days when Fife is distributing large share volumes during the day.
3. Fife's trades are likely marked as short sales as he sometimes (often) is receiving shares that are not fully registered at the time.
4. Fifes activities are not confined to the beginning of the month. This is documented from the many 8-ks that show the inconsistent timing of the Fife conversion payments.
See bullet point #3 in post 110964 for a specific example of the Fife conversion discount that happened on November 16. That transaction is a good example of points 1 and 4 above.
Several key points and corrections:
1. Fife has been getting the shares at an average discount of about 23% to the current price. There is a formula that sets the conversion calculation. From memory, it is 85% of the lowest closing price over the prior 10 or 20 trading days.
2. Fife does care about the price and he can't "instantly" sell the shares in to the market. He carefully manages the flow of those sales, so as not to crater the price. Many careful observers believe that the influx of t-trades that happens every so often are reflections of days when Fife is distributing large share volumes during the day.
3. Fife's trades are likely marked as short sales as he sometimes (often) is receiving shares that are not fully registered at the time.
4. Fifes activities are not confined to the beginning of the month. This is documented from the many 8-ks that show the inconsistent timing of the Fife conversion payments.
See bullet point #3 in post 110964 for a specific example of the Fife conversion discount that happened on November 16. That transaction is a good example of points 1 and 4 above.
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