RE:RE:RE:Today's tradesI find it hard to believe that they Brookfield started this "explore options" scenario without them looking to be the buyer-of-last-resort. Ultimately, pvt. equity firms are looking for ways to exit investment. Rights offerings, no deal, minor asset sale would just prolong the sitch with no light at end of tunnel. Let's face it, they will never be able to slowly sell off their equity stake in the mkt without causing the stock to crater. Taking it private gives them additional options down the road(bolt on deals, re-IPO, flip to another pvt equity firm).
The trader handling the buyback is playing "stock market" as he's either afraid of a plunge in crude or a "no deal" scenario instead of just being methodical in their approach.
We have a low .20's avg price on our block and fully realize a "no deal" is plausible which is why we'll wait to add more on a panic break down to the .14/16 level.
DeValera22 wrote: Well LuckyLuch, with no buyback participation today I start to think various scenarios:
Keeping powder until "do nothing" is the result of this review, let's say by Qtr reporting or
How about a write down to ensure squeaky clean financials and get stock trading at a new, lower, book value?
Another rights offering to build cash for an acquisition?
A deal confusing in the marketplace, so keeping "powder" available to support post the news? (How many here would sell a little-followed security, with no positive transaction, small analyst coverage and not enough liquidity for even small float funds to participate?
What was that old saying? "Good news travels by lightning, bad news by a donkey"?
DV