Balance SheetOne needs to review the Balance sheet to understand the situation here.
The company has only 350 million in Equity and only 140 million in Cash. On 50 million shares, that is 7 dollar per share book value.
But book value last year was over 1 billion, Why the fall? because of the huge writedown last quarter. Goodwill dropped from 3.9 billion to 3.1 billion. So, 1 more small writedown and we have no book value to speak of. But the 3 billion in Debt does not go away. Looks like debt holders are on thin ice right now. Not much collateral backing up their loans.
I think we will see asset sales and some kind of equity sale. I would not be surprised if share count doubles soon and the best assets are sold off.
Buyers will wait for bankruptcy and then pick off the best assets for a fraction of the current price.
JMHO