RE:RE:RE:RE:RE:RE:RE:US Markets ttbone wrote: I can understand your sarcasm giving where the company is standing right now, loosing $$$ is a serious matter to most!! But if the company is takin over doesnt the share price usually increase?
I did not mean to be sarcastic I was dead serious. Suitors looked at this company earlier in the year. No deal materialized because the assets are not worth the debt. The company formally put an end to the strategic review process and the integrity of the financial information that the company puts out is being questioned. The last two quarters have come as a shock to investors (and more disturbing seems to have come as a shock to management). The last attempt in September was when the company tried to negotiate equity in lieu of the earnout due to CInven. This was unsuccessful and the company instead issued $350 more debt. The bondholders are pushing for Chapter 11 restructuring. My guess is that the assets will be broken off and there will be bidders for some of the assets in bankruptcy. For the bondholders to take the kind of hair cut that they are taking already means that your equity is worth nothing, so if you are long I can almost guaranteed your future will be an onerous one. If you are looking for a trade because of the tremendous liquidity that comes into the market before a Chapter 11 announcement, you may be able to trade on a short term share price increase but you have to be a very skilled trader IMO.