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TWO WEEK EXTENSION granted.
"Wellman, Inc. Receives an Additional Two Week Extension of Time for Approval of Bidding Procedure"
news wire.
That takes it up until June 19.
You may be right and you may be wrong . Thats why this is a high risk but high gain play . If you look at where they were versus where they are , things look pretty bleak . But if you consider that with any good news , this will take off like a rocket ship considering most of the shares are no longer in the employees or insiders hands . Most of them are held by people like me that are making a gamble that things turn around . I can tell you this , I am averaged in around .019 and do not plan on selling a single share for less than .15 . If it goes to zero , there is nothing I can do about it . It was a risk I chose to take . If it runs , everyone else can buy my shares at what ever price I feel like selling them for .
I hope you are right, for the employees sake. Still, even if you are, these shares are most likely to drop all the way to zero within 12 months. The debt is just too much to permit anyone but the secured creditors to get anything, IMO.
When I spoke to the person in IR , they did not seem too concerned about things . They said they currently had about 1000 employees and subcontractors working for Wellman . They said Wellman also owns most of the buildings and property they are located on as well . The way I am looking at things is this :
They own buildings
They own land
They own equipment
They were a major manufactor in their sector
They are still doing business and have several hundred employees .
Even if no one buys the company , there are still assets that can be liquidated . I cannot see how they are still doing business and still have that many employees on the pay role if they are that close to closing down . I'll bet that someone buys them out and keeps the plant open .
not good then, i thought this one could have been a winner
>any reason for the sub penny today?
If they don't find a buyer willing to pay top dollar, then this is going to zero.
Right now, I don't see any buyers being willing to take it over at prices greater than the debt.
any reason for the sub penny today? it has been a week since they got an extra week we should get a pr . it could be really good or really bad.
I sent out an email to Wellmans IR yesterday and within minutes got a response . They seem very nice and answered my questions. I asked about the BR and where the company was planning to go from here . I asked how many people were laid off and how many still had their jobs . I asked if Wellman owned the buildings and propery they were located on . And I also asked about the incentive deal for management .
I honestly think the current PPS is ridiculous for the assets the company has and the amount of employees they have as well . I think this could easily be .50 or higher right now with some buying pressure .
WMANQ - The Q means bankruptcy.
Don't ask me why they waited this long to add the Q. It makes no sense to me.
Etrade is showing Wellman now as WMANQ . I've seen the E on the end of ticker symbols but what does "Q" stand for ?
The idea of staying in business was to increase the selling price of the business, so it was expected to continue operations even at a loss.
But it is nice to see a March gross profit of 4 million. Now I'm looking forward to what April will bring.
I can't say I blame the person either . Its a damn shame to let a good company like this go down into flames and still have the nerve to ask for something like they did .
Letter to Judge from a $14 Hour Wellman Employee.
The letter agrees with the trustee and encourages the Judge to deny any incentive plan to Management. Not a happy camper.
The letter is document 0245.
Well they need to get that figured out once they get a buyer on the hook . Other wise , I say to hell with them .
Doesn't look good to me. They are fighting on a bonus to mgmt with incentives for getting a high bid from a buyer for the whole shebang. You gotta give them credit for huge gonads.
Hell we have some serious gaps to fill in before we can call it quits ....... Lets hope .02 is just the beginning of a sweet little run in the next few weeks and or months .
lets get this puppy to close above 2 cents that would be a great week.
WMAN recovery continues... Trading up at 0.020...
Tom
Patience.
agreed heard anything about the case?
The bankruptcy filing was inevitable... Only the timing was uncertain... The Eastman litigation will continue to be a wild card here for potential upside price spikes...
Tom
Patience.
I should would like to see it at least over a dime .
i still believe we should be over 40 cents. like we did not know bankrupsy was around the corner back in january?
Ask up to 0.02 and someone is accumulating...
There will be many opportunities for price spikes higher during the long bankruptcy process...
Tom
Patience.
Reading the transcripts, I am losing faith about a white knight buying the company for more than minimum. Looks like the unsecured creditors will probably take a major beating.
I'm sorry for reporting that, but felt an obligation to state my opinion.
I think we will see a pretty good pop in the next 4-6 weeks depending on how this plays out . I am sitting on about 36,000 shares and looking to pick up another 15,000 or so . I hope to dump them around .15 per share later this summer but who knows with a BK play like this .
TDB -- My thoughts exactly... I noticed the same pattern and had the same conclusion and came here to post... You beat me to the punch...
Tom
Patience.
Interesting Small Trades Today
A whole slew of 5K and 10K trades on the ask of 1.7 cents. That's a whopping $85 and $170 per trade before. I've seen the likes of this before in BK, and it's buying going on without the buyer giving away the size of his interest. My best guess is that we are going to continue to inch higher at a couple tenths of a penny clip.
-the bum
Re; higher each week...
Yeah, I'm starting to like this. All those penny shares I picked up are starting to add nicely into the total. But we still need some volume here to verify a rally. And where a rally takes us is anyone's guess. At a penny, this stock's market cap is ~$350K; so I expect the BK risk play in Wellman to have a lot more takers than that.
Holding for the pop.....
-the bum
Beginning to grind higher each week...
Tom
Patience.
i still like the stock but i am broke. thanks for the encouraging remarks. do not understand why we are still down
"Last time I'm Buying"
I said the same thing a couple million shares ago.
I can't explain all that's going on here. I never can in BK's because there are so many drivers other than just assets and debts. I just have to rely on past experience, which tells me there are still many opportunities for SP surges.
And even on days like today with 2M trades shown, probably just over 1M actual shares traded hands since the MM's double book a lot OTC trades. At this SP, that's a market cap of around $400K with about $15K changing hands today. We're not going to move a whole lot with $15K. But if the market starts to sniff out the possibility of commons getting anything, $15K will be change hands on the first trade.
JMHO
-the bum
Bravo...
These crooks should get nothing.....
Lets make it 3 days in a row.....
WONDERFUL!!
Click on ibox and then document 183.
You will find that the US Trustee in Bankruptcy has filed an objection to the scheme cooked up by the crooked Debtors in Possession, the 'Insiders' who drove this company into bankruptcy with their greed and incompetence.
Bravo!! I am so proud of her.
460 Million - NOL Value from Transcript:
"MR. ADAMS: As of the petition date, the debtors have approximately 460 million dollars worth of NOLs which could be
worth approximately 160 million dollars in the future. This is
a valuable asset of the estate."
Then you add in the Eastman Infringement Suit and finally the actual hard assets.
Substract the debt and there should be something for common.
WMAN NOL's
<< I think one item that has not been discussed much is WMAN's
NOL's >>
I agree; but the only way that we might realize those gians is in a buyout for substantially all the company. I don't think that the judge gives any credit for NOL's in assessing the value of the reorg'ed Wellman.
-the bum
http://www.woodporter.com/ma/030301.htm
The second main issue that arises when dealing with a troubled entity concerns net operating losses. If a business finds itself in, or on the brink of, bankruptcy, it frequently will have significant NOLs. After all, usually the business has been having financial problems for some time, and this produces NOLs. In a very real sense, these NOLs represent an asset of the company.
Why? Because, subject to various limits, they may be used to offset future income once the business has been set back on its feet. Detailed restrictions under Code section 382 govern the ability of NOLs to survive a change in stock ownership.
Special and more favorable rules apply in the bankruptcy context. Interestingly, these special NOL rules apply only bankruptcy, and not in insolvency. In contrast, the COD rules can be of advantage to insolvent companies as well as to bankrupt ones.
...special considerations apply to NOLs in bankruptcy. To begin with, the section 382 limitations on the use of NOLs apply only if there is a change in ownership of the corporation with the NOLs. A change occurs if immediately after an “owner shift involving a 5% shareholder or equity structure shift” the percentage of stock and the loss corporation owned by one or more or 5 percent shareholders has increased by more than 50 percentage points over the lowest percentage of stock owned by those shareholders at any time during the prior three years.
you know i bought at 40 cents 2 months ago and have obviously bought more recently, I really thought bankrupsy was ajusted in the market price when i bought at that high number. back then i was looking for a 150% gain. now i am looking for a gain from a cost bases of 8 cents to one dolar(i do not know the persent gain on that though)
No, I didn't include the DIP financing and the expenses in the figure. But, don't fret. It is possible that the winning bid will cover that too.
With so much liquidity being put back into the financial markets, I suspect we will see a buyer paying all these debts off by using new financing at a fraction of the old rates. And that's with plenty left over to pay the owners(us) a buck or two per share, if not much much more.
so pritty much over the 460 million dollar mark we have a winner is this correst?
$185,000,000.00 in the case of the First Lien
Term Loan and $265,000,000.00 in the case of the Second Lien Term Loan;
Just pointing out what the common is seeing in front of us. If the winning bid can cover those plus the cost of reorganization expenses then we have a winner here.
Personally, I'm looking for a bidding war that results in a billion dollar winning bid.
very true, like it has been discussed the pps is rediculas at one dollar that is only 33 million to stock holders. any news about the eastman suit.
I think one item that has not been discussed much is WMAN's
NOL's. A potential suitor would use this against any future earnings.
Wellmans Nol's are an extremely valuable asset, because under the internal tax code "irc", Wellamn can carry forward its Nols to offset its future taxable income for up to 20 taxable years and thereby reduce its future aggregate tax obligations.
Wellmans Nols are currently estimates to be approximately 460m (and amt nols of 580.3m) which are worth 161m in potential future tax savings.
These tax credits help attract bidders and are worth more than the current price of the commons.....
Nice strong move back up.
I'm just guessing, but since a lot of employees own this stock, they must know something about some of the bidding going on and it is a good thing.
The court approved the 'Incentive Plan' much to my dismay. But maybe that will be reflected in a larger bid and more money to the common.
2ligit2quit:
ken_the_bum@comcast.net
Seller appears done today.
A nice recovery in sp this afternoon. Just not too much volume yet, but it's building. I still contend that this should be a nickel-dime stock thru the BK proceedings. That's a market cap of $1.5-3.0M, which is conmensurate with the risk/reward of commons getting something in this $1B bankruptcy. At 1-cent this stock had a price lower than shares I've seen after they're declared worthless.
-the bum
Bum whatz your e-mail...
I'd like to talk about wman..
thx
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