RE:RE:KRENSAVAGE COMING UP ON BNN ... NOW You can only judge what is happening by the actions the company is taking Lumber. They deferred half the earnout at a rate of 8%, and are issuing notes at 9%? They are baffling analysts who believed their numbers and thought they were a "cash generating machine" as you say. Its not as if the strategic reviews best solution should have been "hey, I think we need more high interest debt". Things must be pretty tight to defer they payout at 8% and issue notes at 9% to actually pay it out when their guidance would indicate otherwise. They seem to built in a profit warning in the last press release and a previous release stated "we BELIEVE we have ACCESS to sufficient resources", then you get a note issue! Not exactly the confidence you would expect from a "cash generating machine" as you say. It seems more like a company holding on for dear life.
Lumberfeverlong wrote: BNN has been giving plenty of time to skeptics recently. The story is interesting to viewers now because of the negativity surrounding the stock just like the story was interesting when the stock was on a constant upward trajectory. What I found telling about the interview was when Kern Savage said his fund has been considering covering from $28 to now, but won't conver becasue he thinks the company will continue its downward trajectory (paraphasing, but that was essentially his point). Well, my take on his view is that it is similar to those who were touting this stock when it was over $100. That was irresponsible because even with the information that was available then, the company was more than fairly valued. The opposite is true now. The company is still a cash-generating machine and come this next week will have significant additional capital to execute on a revised business plan. The market has way overshot on the downside just like it way overshott on the upside. Markets do this over and over, but few learn and take advantage of this irrtionality. When everyone is positive on a stock, every smart investor knows it's time to sell and when everyone is negative on a stock that is usually the time to buy, unless a company is really heading towards insolvency, which is not the case here. Not even close.
LaticelnExile wrote: This guy is one of the smartest that I know. Nice to see BNN giving some skeptics air time, and not just the bulls.