RE:RE:LATEST RUMOR !ALA tanked and bounced a bit. Recovery is still in the distant future.. PEY tanked, then tanked more.
my2sense wrote: It would be pretty crummy, if that were the case,
I mean, snagging people that are looking for a yield because the banks offer very little.
But it has happened to me before, where I purchased a British water utility a couple years ago (can't remember the name but it was recommened by Contra The Heard) because they were offering a 10% yield. Fortrunately, the private buyout was slightly above my purchase price, so I did not lose any money.
The spoils of a swoop-and-scoop privatization do look good. A cash machine with a fat dividend that can be diverted to pay off the debt in a couple years time
And the optics to lure the retail investor into the stock also look good
a) A juicy dividend
b) ALA tanked and recovered, so some are kicking themselves for missing out, but now see another opportunity to make a good return
Unfortuanately, I think most retail investors do not realize that their brokerages lend out their stock, for shorting. So if a stock is retail investor heavy (like I think this one is), then it's a vicious downward spiral, as more retail investors pile in, seeing promise of even greater returns.