Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Last question for any accounts out there and trying to stimulte any discussion on here other that WallStreet and I.
In the company MOR there is a ($16M) in the income tax payable amount which reduces their liabilities. Is this just accounting noise or are they really expecting a refund of $16M? This account is usually to used to estimate the amount that they need to submit to a government, I'm not used to seeing an entry like this.
Does anyone else see anything out there which explains the 350k+ shares traded in the last 10 minutes of the day?
If someone wants to privately send an email at mrholty at hotmail dot com. I don't see anything.
I would agree that the Global Settlement is dead.
Hell, I want to strangle Mr. Park along with Brooks. Its too bad they just got fired now. That said why would any law firm want to work with Brooks, none of them are getting paid. (How will these guys get paid?)
If you look in the BK docket, 2535 you see that the debtors attorney and others were still looking at a global settlement as late as 8/21 with judgement on 8/22. Aargh.
I saw the thing from Mr. Goldstein that you mention below. I'm not knowledgeable about what Rule 38 really is and my google skills are limited. However, isn't point 3 in the same document argues that any restitution should occur before the $65M of forfeiture assets already collected. If correct (and I don't know if they are right) then that means that in theory the company and former shareholders should have first rights to the $160M that is seized before the $65M taken by the gov. This seems to be a positive for the company as increases the size of the potentail available funds especially since the gov agrees with over $100M to the company.
I agree that this is going to take a while. Hell, the 12/16 hearing which was originally scheduled for Sep in now mid-Jan and I bet get pushed again.
Mr H, couple things. One, the entire Brooks clan has changed their respective lawyers since there was talk of a global settlement....so it's safe to say there's not one. Second, that $185 seizure number that you see in the news articles and what not calculates all those pens and trinkets at cost. The actual cash and cash equivalents is around 20 million less. You can find this info in the docket although I can't remember off hand the specific docket number. It was mostly all cash in the accounts. The few securities are some odd ball foreign stock and stuff and of course a little bit of pbsoq. Not enough to amount to any windfalls for sure.
No settlement means drag on. Brooks has plenty of time to appeal over and over....it's not like he has anything better to do at the pokey.
Agreed on all your thoughts. Why do you think it will drag on? Assuming the judge makes her decision around 12/20 similar to what she did this summer why wouldn't it be wrapped up early next year. Do you assume appeals that will drag this out?
I am shocked that the debtors of PBSOQ are simply sitting quietly for so long. I guess they assume (rightly) they would get nothing today and may get paid in full in the future. However, I don't see anybody buying up their claims in the BK docket. Wonder what % those guys are looking for?
Last, the vast majority of the money seized was in various brokerage accounts. IIRC the $185M was calculated as of some time in 2010. If these were in equities the general market is up 55% since Jan 1, 2010. At the time of the seizure would they liquidate the positions or do you think that there is really more in these accounts?
Your guess is as good as any. Although my guess for creditors is around $45 million. Looks like this deal will drag out for years to come, imo. Class action wants it all and Terry Brooks filed an updated claim. That doesn't look like anyone is agreeing to anything.
And the guy holding the cards is sitting in jail after Park and Co messed up the sentencing. You would think the incentive for a global settlement would have been to do it heading into the sentencing hearing...and that didn't happen.
Nope. Main Meeting isn't until mid-December (12/16).
Anybody have any thoughts/comments that Mr. Brooks lawyers (Tai Park) asking to resign as they were probably the reason for a non-global settlement and what the future really holds.
Anybody have any thoughts on Docket #1750 from 11/8 by the Class Action Lead Plantiffs?
My random/wild guess:
Government keeps the $60M from the insider trading.
My guess is that the current business gets $30M to pay off creditors leaving current shareholders nothing and class action gets $90M up from $40M. No facts to justify it but my guess.
Big meeting tomorrow...could be what we've been waiting for...
Thanks. What recent case law are you referring to? Since last year the judge has basically been stuck in this $60M range based on the testimony from what two years ago now.
I've read basically all the documents before sentencing and feel comfortable with what the gov't position was but is there a specific Pre-sentencing report you are referring to? The PSR was refernced in #1588 (10.03.2012) as being filed on Sept 25th but I have never been able to find a docket with that information available.
At this point I really struggle with what is next for all parties. You are way more versed in this than I. Lets assume that the restitution settlement actually happens in November. Since I have never seen the PSR lets assume that the judge sets the restitution equal to the claim amounts for original shareholders (set by Gilardi) and what PBSOQ claims they were damaged as a company. Is this reasonable? For current PBSOQ shareholders it basically all they have left as an option. Then all that would be left for Brooks are civil proceedings against Brooks and his family.
The length of the sentencing didn't have anything to do with the government's appeal, as that lies within the discretion of the court. I am waiting on their brief, but I'd imagine they were not happy that the judge didn't adjust the forfeiture amount upward based on the recent case law that applied.
Brooks, on the other hand, knew in advance of the sentencing the government's position as far as forfeiture and restitution. The pre-sentencing report contains the government's position and amounts of requested restitution. Brooks apparently decided against a global settlement when he hired new counsel (which he does often) whom obviously advised him to drop settlement talks and fight to the bitter end. Supposedly Brooks is losing his mind, but allowing his new lawyers to parade into the sentencing hearing without a global settlement was just retarded.
He needs to hire new counsel again, because the one he has now is more worried about padding invoices (ie delays and more delays) than getting his client the best deal possible.
I see you are right that there will be more delays in that the restitution hearing has been moved from 10/15 to 11/15.
Anybody have any idea on why the US would appeal the sentencing that was handed down (docket #1729)?
As an outsider and not a lawyer I think the only reason would be that the lenght of the sentencing was more than they were expecting which ruined Brooks attempt to a Global Settlement. Any other thoughts on this?
Any change to your opinion on this case after brooks sentencing?
Thanks for the valuable response.
I didn't realize the bid got that low during the day as I didn't see anything on the sentencing front. I now see articles on the 17 years which I hadn't before but I still don't see anything in PACER.
I agree with everything else you wrote as a settlement is not worth anything after sentencing and time is more important that dollars.
The articles I can find on this state that he must also pay restititution which will be determined in 90 days. Wouldn't restitution be payable to the company? Granted he is going to appeal this for a long time.
Who is going to get the monies from the insider trading amount that the DOJ just filed to get? The original shareholders?
BTW, you are correct on the payables amount. I grabbed just the amount on Liabilities subject to compromise. I apologize for thinking you were negative. You had more informationt than I did which is deadly for me. Thanks for your time to respond.
I respect your opinion and knowledge but I'm confused by your statement. Was this meant for the FEEDQ board?
The 11 cent bid is normal for outside of the normal trading day. I'm not seeing anything on Pacer outside of the request by the gov to liquidate $65M of the seized assets (#1702) which per the doc is about 1/3 or the total value of the seized assets and the objections by Brooks.
At this point the case for shareholders rests on there being a global settlement which has been hinted at for quite a while in many of the documents along with the idea of what amount would go back to the company to pay back debtors with the hope that any remaining will be distributed to shareholders.
If the estate gets 100% of its amount that it claims was damaged by Brooks that is $90M. Subtract out total liabilities of $41M divide by shares outstanding and you get $1.00/share and more if you assume that mgmt will cancel any of the shares that are owned by Brooks which the gov't states are 6M but estimates from a former board poster a few years ago was closer to 20M shares. I know you general disdain for many of the attorneys in the BK process but in BK docket #2710 shows the debtors attornies justifying their value to the company so clearly something is still going on. If it was a zero
What am I missing?
I must admin that I expect that the above mentioned Global Settlement would have been finalized/agreed to before sentencing.
Why are you negative on it?
Yeah. The bid is 11 cents for a reason.
Interesting price action last few days. Anyone see any news?
As far as I know it was still on for this morning at 10:30
Maybe some news will be out this afternoon?
Any news today or further delay?
Postphoned till August 7
Nothing on Pacer. Hearing tomorrowing regarding sentencing of Brooks. I was going to call to see if I could listen via CourtCall but forgot.
Anyone see anything on pacer? Volume picking up recently
The conference should be private after all they didn't let Mr. Cohen's representation in there even though they have been deeply involved since day 1. Nothing in Pacer today.
Any idea what's happening at the conference? Decent volume so far
I was happy that you purchased it. I sold it at .45, thanks for taking it away from me and I'm not looking back....
I was wondering who that was. Congrats.
You can all thank me for my purchase at .45 to make my pa look better. Irrational I know but it felt right and the may 15 date made it easier
I remain optimistic that the Global Settlement gets approved by the DOJ. The next Global Settlement conference is May 15th.
How are you feeling about pbsoq these days?
The Global Settlement conference was moved to May 15th.
Looks like another delay.
Thank you. I dont have direct messages
We are not likely to get any details just yet. The event today was a Conference not a hearing so I am pretty certain it was only open to counsel and to the Magistrate Judge. Since the respective counsel were supposed to submit their positions on the Global Settlement via fax by Dec. 27th as opposed to filing them on the docket, it is safe to assume that the meeting today is private. Right now all Forfeiture proceedings are stayed in the Criminal Court to allow the parties to focus their attention squarely on the Global Settlement. Why this was not done many many months ago is just beyond me. We should see a status report in about a month when the stay lapses but until then it may be all quiet unless someone files something in the criminal case making an off-hand reference to the progress of discussions. All of the other litigation stuff is stayed until the March/April timeframe so hopefully that is enough time to get this Global Settlement approved by the DOJ and put in front of all the various courts for approval.
You and Mr. Holty can feel free to email me and we can discuss this case and other litigation/liquidation cases I am following.
Anyone have details on the Brooks hearing?
No. I had reduced my position a lot in the 40s on the extension to April. It's now in the same range as where I first bought and the risk reward is at a better level than it has been for several months.
Did you buy because of the docket and the meeting scheduled for Jan 3rd.
Quite the binary event.
Nice work. I think we are getting close to the finish line. I have my full % here and am waiting to hear the outcome. Will be interesting I expect.
Made my first purchase of pbsoq since 2011.
Good point. I was about to hit the ask at .28 and someone beat me to it. Maybe tomorrow. Risk reward back to being very interesting especially versus more liquid stocks that will get whipped around by fiscal cliff noise
I'd assume the seller is part of the Brooks family. Any settlement discussion will probably void the shares they own and I don't believe that they are under trading restrictions at this time.
It could be simply a fund slowly liquidating a position as well but if you've hung around this long why quit now?
Who is the seller? No reason for buyers to step in given the continued court delays. Probably not a bad level to add. I'm now underwater on purchases from march 2011. Talk about dead money. Should have sold it in 2011 on spike to .8 and never looked back. Same with dimeq!
Anybody have any thoughts on the continued weekly 100k share sales weekly. It looks like someone is slowly trying to sell 100k shares each week and we've finally hit the point where the buyers are running out of powder.
I have a guess who the seller is probably related to and am frustrated by how long this is taking. I figured if there was a a settlement Cohen would want it done before sentencing as it would make him look better but now I wonder if he really cares. Are his arguments and his new famous lawyer just a dog and pony show to play out the string until the settlement or is he really crazy.
Any odds on how long we have. Greater or less than 6 months? I go less and we'll know something in January.
Followers
|
20
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
461
|
Created
|
08/07/06
|
Type
|
Free
|
Moderators |
SS Body Armor I, Inc.
2102 SW 2nd Street
Pompano Beach, Florida 33069
(954) 630-0900
PBSOQ Filing Date Forward (4/14/10):
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |