Folks - can anyone who follows this ticker explain
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Posted On: 03/30/2019 10:35:34 AM
Folks - can anyone who follows this ticker explain to me how S. Boyd makes money here ? Let's just say for argument sake that Boyd is banking on the PPS falling bigtime. Ok then, he spent $3.17M and now has ~228k common shares that are free trading. Say he dumps all of them at $5 for $1.14M. So. he is still DOWN $2.03M on his original outlay. Not good and warrants are useless
Now follow me - let's say Bassam DOUBLES o/s count to 5M, well BOYD can't own more than 10% of outstanding shares - so that would be 500k shares max in this scenario. Say he goes short and eventually covers by buying 500k shares (say PPS drops from $5.50 to a $1). ALL that to make/profit ~$220K ??? Help me to understand how the rising star (BOYD) makes money on the deal he made?
I would bet that the PPS goes up BIG soon and that his warrants get in the money before he takes profits. IF I am correct, then something substantial has to be coming to attract demand in order to raise PPS to above $7.35 for Boyd to exercise.
Here is the math...Boyd (one of the largest shareholders) buys shares and warrants at 7 and 8 cents. After the 1-105 reverse split that just happened, his free trading got slashed to ~228k. He spent $3.17M folks
228,000 shares post split x $5 PPS = $1.14M
$3.17M - 1.14M = DOWN $2.03M
IF he dumps his free trading and Damaj raises o/s to 5M (from ~2.5M) then Boyd can ONLY be a 10% owner by the deal made.
If PPS crashed from say $5.50 to $1 - then 500k shares x $4.50 = $2.25M profit. BUT he's DOWN 2.03M...so his true profit is $220,000 in this really bad scenario.
MY POINT: What does Boyd know/see to have made this deal ? He is a well respected hedge fund guy / rising star. I am sure he did his DD and will profit big but HOW ?????? Note: On one of the filings the reason why he purchased was that he felt the company was undervalued.
Now follow me - let's say Bassam DOUBLES o/s count to 5M, well BOYD can't own more than 10% of outstanding shares - so that would be 500k shares max in this scenario. Say he goes short and eventually covers by buying 500k shares (say PPS drops from $5.50 to a $1). ALL that to make/profit ~$220K ??? Help me to understand how the rising star (BOYD) makes money on the deal he made?
I would bet that the PPS goes up BIG soon and that his warrants get in the money before he takes profits. IF I am correct, then something substantial has to be coming to attract demand in order to raise PPS to above $7.35 for Boyd to exercise.
Here is the math...Boyd (one of the largest shareholders) buys shares and warrants at 7 and 8 cents. After the 1-105 reverse split that just happened, his free trading got slashed to ~228k. He spent $3.17M folks
228,000 shares post split x $5 PPS = $1.14M
$3.17M - 1.14M = DOWN $2.03M
IF he dumps his free trading and Damaj raises o/s to 5M (from ~2.5M) then Boyd can ONLY be a 10% owner by the deal made.
If PPS crashed from say $5.50 to $1 - then 500k shares x $4.50 = $2.25M profit. BUT he's DOWN 2.03M...so his true profit is $220,000 in this really bad scenario.
MY POINT: What does Boyd know/see to have made this deal ? He is a well respected hedge fund guy / rising star. I am sure he did his DD and will profit big but HOW ?????? Note: On one of the filings the reason why he purchased was that he felt the company was undervalued.
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