I think from your question you assume that all insider shares are longs? Please correct me if I am wrong here. Most insiders that provide capital require a return on investment consistent with their perceived risk to that capital and enter into a share structure that builds in ROI over a specific timeframe, lets say for example that you are an insider/RS holder such as one of the following per the 13/31/2013 Financials of FITX
JW Financial RS
221,185,424
HH Group LLC
316,724,488
Swan Alliance
310,993,204
Capital Shield
300,000,000
Prime Equities
100,000,000
Richardson
339,243,695
TOTAL RS 1,588,146,811
Now, can we a shareholders know that all the above shares are going to be longs or is it reasonable to believe some or all of these shares could find there way into the market as RS converts into cash? If most all of these shares were issued at .001 then does it not stand to reason that liquidating into the market at less than or at bid/ask effectively shorts the market? What kind of volume does the market need to absorb these shares and what will the pps be as it relates to that volume?
This is simply a function of business operations and comes down to risk versus reward. Not all RS holders should be considered as "longs" just as I am sure, many will recover their initial capital investment along with a nice profit and continue to hold shares as they increase in value.
Having been involved in tens of millions of dollars of debt and equity finance this is just my two cents worth. I believe we should have a realistic viewpoint on what all these shares mean in the market. Ask yourself this. Does any share holder of RS have any legal obligation preventing him/her/them from liquidating into the market after the shares become unrestricted?
If I am wrong here please let me know.
JW Financial RS
221,185,424
HH Group LLC
316,724,488
Swan Alliance
310,993,204
Capital Shield
300,000,000
Prime Equities
100,000,000
Richardson
339,243,695
TOTAL RS 1,588,146,811
Now, can we a shareholders know that all the above shares are going to be longs or is it reasonable to believe some or all of these shares could find there way into the market as RS converts into cash? If most all of these shares were issued at .001 then does it not stand to reason that liquidating into the market at less than or at bid/ask effectively shorts the market? What kind of volume does the market need to absorb these shares and what will the pps be as it relates to that volume?
This is simply a function of business operations and comes down to risk versus reward. Not all RS holders should be considered as "longs" just as I am sure, many will recover their initial capital investment along with a nice profit and continue to hold shares as they increase in value.
Having been involved in tens of millions of dollars of debt and equity finance this is just my two cents worth. I believe we should have a realistic viewpoint on what all these shares mean in the market. Ask yourself this. Does any share holder of RS have any legal obligation preventing him/her/them from liquidating into the market after the shares become unrestricted?
If I am wrong here please let me know.
