Cash Store Financial Services Inc CSFS

Still something.....

[soberinvestor]

Thanks guys for your takes on my previous question. I know companies go through rough times, what I'm most concerned about though is that negative equity. It isn't that big at the moment but it would have to be eliminated in the next quarter or so, otherwise isn't there a law forcing companies with negative equities to wind down, which would trim payouts to lenders and leave nothing to shareholders. Obviously corporation is not a government who can run debt adding to it every year foreever as it's happening. Just wonder if there is a law or it all entirely depends on lenders whether they pull the plug or not. Is it also possible that all that downdraft is staged to take the company private for cents on a dollar or even booting out original shareholders, like it happened with many companies before, right off the top of my head Stelco for egz. Would appreciate your take on it guys. Thanks.

[Darcy1313]

Those are great points.  With regards to the the law I am no expert.  I do agree that the organization could very well be staging itself to be taken private.  I guess the coming months will be telling in that regard. With regards to Stelco, didn't they go private?  That is what I remember.  I don't recall share price or what position they were in from a negative

[soberinvestor]

Stelco didn't have negative equity, on the contrary 1.2 bilion equity on books when it went under bancuptcy protection arguing that it has pension plan deficiancy. I only cited Stelco in terms in my opinion being fixed for taking over booting all shareholders and some bond holder. I was only wondering if CSF is on similar track, to take it over for either free or pennies on a dollar. Stelco

[Darcy1313]

Ah.  Thanks for the clarification.  I'm following you now.  Great question.  I guess we will see.