RE: Question about debtvalueVulture- a couple of observations
1. Your post about HomerJ was dead on. Glad you did it as I had the exact feeling, except you beat me to it;
2. I pust a post the other night about the ship hitting an iceberg but no need to panic. I still stick to my notion to hang on. I backed this up by buying more shares, albeit at 83 cents two days ago and now they are down, but cant do that to ourselves unless we are day traders (which I am not). I believe in LDM in the longer term and am looking at the longer term aspects.
3. The deferral of interest payments makes all the sense in the world.
4. The lack of information from LDM to their shareholders is shameful, that I totally agree with. Perhaps that is another caveat - management are there to protect themselves and not the shareholders.
5. why did they not release all the bad news at once - perhaps they did not know all the bad news, such as SK results, and events have forced them into this terrible bleeding over a prolonged period of time.
As I stated above I am very long on LDM. I believe in the fundamentals of the company and their continuing ability to generate sufficient cash flow to service their debt. If in fact they cannot service the debt then there is still hope that the banks will not simply pull the plug on the company as that would also result in singificant losses to the banking syndicate.
I am taking a very long term view to this stock. I got burned on Air Canada buying and panicking over a significant share fall. I would have easily doubled my money if I had held. Like LDM the fundamentals were right but the timing was wrong.
As for the post about LDM being the same as PHV - this poster could not be further from the truth. PHV was a company that was being milked (or is it bilked) by a few unscupulous executives and fraud was being committed. They also did not have any cash flow and the end was certainly visible to anyone who wanted to look for clues. As I said above LDM has a number of attributes going for it that should separate it out of the morass of failing companies.
I can only assume that the worst of the bad news is now behind us and only better things can happen from here on in. I have been surprised by the market action on both this and SK in the past two months. Hopefully I will be more pleasantly surprised as we move into the summer with both stocks..
cheers