It could get really crazy if the LSTR float stays at 110,000 (SURGE converts) and the price goes to $3. Then the LPS would be 90 x $3 = $270 LSTR. 75 x 270 = $20,250. A 10x on a safe investment over 5 months. And these are my numbers. Yours would be what, 4x this? 5x? And this obviously doesn't include the actual LSTR we already own outright. Nuts.
Not SURGE. Those will convert into new LSTR at 50 to 1. That will dilute the LSTR holders by 10%, but the funds raised by SURGE have already moved the LPS up by 10-15, and it's only a quarter of the way done. The whole idea is that any dilution they do (and they WILL be doing it) will have an "accretive" effect on LSTR. In layman's terms, that means that the money they raise will take the LPS higher than any dilution. At least that's the idea anyway. I think that will get tougher to do as the price of LEO goes higher but....we'll see. Either way, adding more LSTR adds more investors, more liquidity, and more visibility so even if the dilution is flat or even slightly negative, I think the benefits will still outweigh the slight dilution.
Merry indeed!!! :-)
It could get really crazy if the LSTR float stays at 110,000 (SURGE converts) and the price goes to $3. Then the LPS would be 90 x $3 = $270 LSTR. 75 x 270 = $20,250. A 10x on a safe investment over 5 months. And these are my numbers. Yours would be what, 4x this? 5x? And this obviously doesn't include the actual LSTR we already own outright. Nuts.
You lost me somewhere in there, but yes nuts!
Why 110,000? I thought it was 100k.
The 500,000 SURGE will convert to 10,000 new LSTR, meaning the float will then be 110,000.
I thought that all of the LSTR "conversions" were actually them buying them off of the open market!
The SURGE yields and the lstr.voter payouts are bought off the market. That's it right now...
Not SURGE. Those will convert into new LSTR at 50 to 1. That will dilute the LSTR holders by 10%, but the funds raised by SURGE have already moved the LPS up by 10-15, and it's only a quarter of the way done. The whole idea is that any dilution they do (and they WILL be doing it) will have an "accretive" effect on LSTR. In layman's terms, that means that the money they raise will take the LPS higher than any dilution. At least that's the idea anyway. I think that will get tougher to do as the price of LEO goes higher but....we'll see. Either way, adding more LSTR adds more investors, more liquidity, and more visibility so even if the dilution is flat or even slightly negative, I think the benefits will still outweigh the slight dilution.
Oh yeah. Forgot about the convertibility!
!vote
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