puckman,A few additional observations on the 59m shares.....The...

puckman,
A few additional observations on the 59m shares.....
The S and I Investment Group Pty Ltd, was a convertible Note Holder with 87.5m shares.
They have forgone the annual 7.5% interest rate return due on the notes by selling at what looks like an average price of about 1.7c with a gross realisation of about $1m for their initial investment in the convertible notes and the conversion cost.
They converted the notes on or about the 24th of June and as you mentioned, sold the shares between the 26th of June and the 7th of July.
The negative impact of selling the converted notes ( shares) is reflected in the share price due to the large number sold in the short period which is to be expected, but the benefit to the company is the early cash payment of the $350,000 to convert as well as no longer having to pay the interest to the note holder. The notes expiry date is 31 dec 2012 or 30 june 2013, so every note that is converted early not only gives the company further cash, it reduces the interest payable. A win/ win.
Short term, it is more desirable to have the convertible notes converted without an immediate sell but that's up to the individual note holder. There are a hundred different reasons why someone chooses to hold or sell and take a profit.
The good thing is, that for each share the S and I Group sold, there was a buyer.
The current buy/sell depth shows 35.8m to 27.5m with 6.1m at 1.5c forming a base for tomorrow's open. The S and I Group still has 28.5m (5.31%) shares but no longer have 87.5m shares (18.68%). If they choose to sell what they have left, the market has shown strength in being able to hold around 1.5c with 59m shares hitting the market in a week. So another 28.5m should be taken up without too much further short term impact.
On the other side of the equation, if they hold their remaining 5.31%, they should see the share price ,move higher based on supply and demand movements.....restrict the supply etc.
The 3B notice from the 3rd of feb shows 162.475m shares issued with 66.875m shares issued to directors in lieu of cash compensation. As at the most recent 3B, (2nd July 09) there are 537,090,800 shares, 34,434,997 listed 20c options expiring 30th June 2010 ( none of which are listed for sale in the market) and 119,500,000 unlisted dec 2015 .008c options.
An all new board of directors, a new marketing strategy, a new acquisition ( which appears to have been acquired at a fire sale price, about 10% of book value) and new sales and sale agreements across the globe. All looks good from what I can see from information available.
It will be to the companies advantage to secure the acquisition and announce full details prior to setting a price for the balance of funding as approved by the shareholder meeting ( approved in April, from memory), at at least 1.5c or above. It would be reasonable to expect a massive over subscription with so much improving since the initial funding levels.
There has been a plethora of good announcements adding strength to the new Stirling for a much higher demand and therefore a higher price for any new issue.
With the S and I Group change in substantial holding, the next couple of weeks should see the share price move upwards.
Here's hoping.