RE: RE: From Russia with love!!The game between the minority shareholders and Severstal has been going on for the past six months or so. The pendulum swung our way for the past three months culminating in the share price appreciation to .37 Now Severstal is fighting back and playing "hard ball" in causing a frivolous paper loss, any savvy investor can see what they are trying to do. For the moment the pendulum is swinging against us. AND watch out for the POG, if it falls off below $900 US and continues to fall the HRG share price will go down big time, and the shorts will be watching looking for an opening. If there is any panic selling, you might just pick up a bargan again. But I believe saving a real takeout offer, the shareprice of HRG is somewhat capped, and there will be liquidity problems if folks don't keep the faith, again just my opinion. It's now a waiting game of wills and stupidity.
For what others have posted on this board we can conclude the following.
1) Severstal does not have the cash to make a "real" offer to buy out the minority, so status quo
2) Hiring lawyers is very expensive, and you pay as you go, with no guarantee of anything, and will take years,
3) Class action (see note 2) and appeals etc etc etc
4) Severstal WILL NOT let the share price rise because it does not benefit them, they want .30
5) Severstal will use the cash generated by HRG to continue pay down the debt
6) Severstal is in total control of the shares 60%+, and the BOD
7) All top management of HRG is now Severstal controlled
So why small claims court? I am investigating the merits, but it is cheap, there is NO appeal of the verdict, If successful, you get a judgement and HRG IS REQUIRED to pay, HRG has assets in Canada. If you win one time, then HRG will lose everytime.
CJ