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Black swan
Shareholder advocacy was a critical feature in
the seven 100 cent+ cases we studied. In four
of them, an Official Committee of Equity
Holders was appointed. In the other three
cases, equity holders remained in control and
assisted with the restructuring. With or even
without an Official Committee of Equity
Holders, key shareholder advocates participated
actively and vigorously in all cases to maintain
ownership and control of the entity upon its
emergence. Pershing Square Capital
Management was not only an ardent
shareholder advocate, but also a major equity
contributor to the reorganized GGP.
ASARCO’s parent, Grupo Mexico, displayed
the same level of fervor, putting forth a
competing plan of reorganization that was
ultimately approved by the court. In the Flying
J case, the equity owners worked tirelessly to
http://www.grantthornton.com/staticfiles/GTCom/Advisory/Restructuring%20and%20turnaround/Case%20studies/Case_Study-100_cent_%20cases-FINAL_%2001252012.pdf
A very large shareholder sounds like more powerful shareholder may have joined the force and we may have fun ahead. Its all about the dollar bills at the end of the day. Some make, others lose, life goes on. But no cheating please. He who knows the rules of the bankruptcy court wins the game and "insider trading" can be lethal to those who did when a very large shareholder decides to step inside the courthouse. Weeks ahead will be more unstable as it seems. Innocent until proven guilty doesn't mean that nobody's watching. Thank you very large shareholders. I hope my assumption of very large insider trading comes out to be true and you guys kick some asses.
Letter sent on Friday from Washington State. This stock price continues to swing harder and harder like a washing machine spinning the dirty clothes since April 11th. I have sent that information as well to the US Trustee (unimaginable number of shares traded during April 11th Thrusday, 2013 and April 12th Friday 2013 in 5 cents to 10 cents range. If I'm followed up by the US trustee or department of justice or SEC or whoever to provide more information, I'll be happy to to scottrade and find out more on who bought those shares. Was it insider trading? I wish and hope it is the truth. And if there was insider trading involved on 11th and 12th of April with those huge number of shares traded, I wish the people involved get legal remedy of stealing someone else' property. But, all if that is what happened during those transactions.
I'm reading T. Boone Pickens and he mentions..
Chief executives who themselves own few shares of their companies have no more feeling for the stockholders than they do for baboons in Africa
Don't know much about Mr Caroll but his bio says he's 50 years old and graduated from stanford in human biology and economics - 2 very interesting topics! By reading Pickens, I think Mr Caroll would be in Picken's camp ground if they were same age.
I'm not talking about you. I'm talking about the pimps. There is no reason for this stock to be trading at 3 cents. There has been no significant changes in the circumstances surrounding this case -while this was trading around 12 to 20 cents on 12th and on Monday the 15th. If you can get something done, may be you figure out if that was an "insider trading" done on behalf of "non-public" and material information. Have you seen any significant change since April 12th for this stock to be trading at this price? Commons were no in the plan then, commons are not in the plan now. There were parties of interest and the sale was cancelled. I don't see a real significant change. We may just end up having a equity committe; although they may have "no say" in May. I happened to use the word "daddy" but I certainly mean that whoever bought those shares on 10TH OF APRIL 2013 and 11TH OF APRIL 2013..they either have done a really good job of buying all those shares right before -----WHAT? What was going to happen on 12th? They signed some paper. Can you get the lead and figure out who may have bought those shares in 7 cents to 12 cents in 2 days -worth what 7 to 8 million shares? Who wanted to own it and why during that period, based on what information? Can you take this as an idea?
Cigar smoking and Greenwhich connecticut living (or the wanna bez) court pimps shorting hard telling people..this is what happens when you try to BS with big daddy? The big daddy pimps.
Since delays are tiresome and you guys are bored, you probably didn't know that we have a small shop. Have some coffee guys while you wait and here's some for you guys!
I don't know much about Elon Musk but I'm his fan for the way he presents himself. Here's some from him..
Elon Musk ?@elonmusk 12h
Seems to be some stormy weather over in Shortville these days
Elon musk commenting on TSLA share price yesterday.
This one is really cool on the "no gravity" stuff
Shareholders - write the email to the below email address from your email. That's all we need to do at this time. Keep it rolling 1 step at a time and hey trade creditors who also hold a lot of equities from april 11 and april 12 - what's up with ya'll? get them lawyers boys
Juliet.m.Sarkessian@usdoj.gov
XXXXX
XXXXXX
East Hampton, NY 11937
April 5,2010
Honorable Kevin J. Carey
Chief Judge, United States Bankruptcy Court for the District of Delaware.
824 Market Steet.
Wilmington, Delaware 19801
Case # 09-11296(KIC) Jointly Administered
Dear Judge Carey,
I am currently a shareholder of _______. I am writing you in regard to a request
for an Equity Committee in this bankruptcy case.
With all due respect historically and especially in times like these, shareholders of a
company in bankruptcy have rarely been given a proper voice in court proceedings. I say in
times like these because many companies have been forced into bankruptcy that normally would
not have in the past. I think the formal request shows _______is one of these companies.
I would appreciate you give this request the attention and merit it deserves. I have no
doubt you will.
now may remain silent until the judge decides on your request! Officer - tape his mouth.
There's someone who showed me the tricks and we ended up in this board.
yes and at that particular time
sorry, I'm not playing in the pink land. just found your thoughts and experiences very helpful. I think, even among value hunters, that's one area people get confused on how to actually value brands and management. but that's different. as you say arbitrary, I guess it depends on who understands the whole picture has better chance of valuating brand etc.
Hi Lowtrade,
You mentioned " good will & intangible assets" . How do you value this or when you look at the BS, do you spend time to analyze of of it? Is this perception based or there's some ratio's to figure out the value of good will? Isn't think brand value is subjective? Like land value where if the value of the land of the surrounding community is more then our land value is also more. However, goodwill or intangible asset value i find is personal improvement of the brand against the neighbors -if considering the land example. I don't know if my question make sense.
Here's an update to the story..
ST. LOUIS, Apr 23, 2013 (BUSINESS WIRE) -- --Earnings growth
--- Diluted EPS $0.29 in 2013 versus $0.08 in 2012
--- Annualized return on average assets 1.09% in 2013 versus 0.42% in 2012
--- Annualized return on average common equity 13.36% in 2013 versus 3.67% in 2012
--66% increase in mortgage revenues
--73% decline in combined provision for loan losses and foreclosure costs
--Linked Quarter Highlights
--5% increase in mortgage revenues
--$18 million, or 3%, increase in commercial loans
--Net interest income declines modestly; strong commercial loan growth only partially offsets impact of market-driven yield declines and expected legacy residential mortgage portfolio runoff
--51% decline in combined provision for loan losses and foreclosure costs
--Continued improvement in asset quality Is B the reason for A to happen and vice versa?
--- Non-performing assets down $7.2 million, or 14%, to 3.3% of total assets from 3.8%
--- Internal adversely classified assets decreased 14%
--- Percentage of loans that were 31 to 89 days past due on payments remained almost constant at approximately 1% of gross loans
Pulaski Financial Corp. (nasdaq global select:PULB) reported net income available to common shares for the quarter ended March 31, 2013 of $3.2 million, or $0.29 per diluted common share, compared with $851,000, or $0.08 per diluted common share, for the quarter ended March 31, 2012. For the six-month periods, the Company reported net income available to common shares of $6.0 million, or $0.54 per diluted common share, in 2013 compared with net income of $3.4 million, or $0.30 per diluted common share, in 2012.
Gary Douglass, President and Chief Executive Officer, commented, "We are very pleased with our second fiscal quarter results, which, when combined with first quarter results, yield an outstanding first half earnings performance. Our ongoing focus on asset quality improvement resulted in meaningful declines in overall credit costs. Despite a challenging and generally low growth environment, our commercial lending team delivered another solid quarter in terms of loan growth. And finally, our mortgage banking operation contributed yet another strong quarter of revenue growth."
Net Interest Income Declines Modestly
Net interest income was $11.5 million for the quarter ended March 31, 2013 compared with $11.8 million in each of the quarters ended December 31, 2012 and March 31, 2012. The decreases were primarily the result of declines in the net interest margin, which was 3.67% for the quarter ended March 31, 2013 compared with 3.87% for the December 2012 quarter and 3.88% for the March 2012 quarter.
Douglass commented, "We continue to be encouraged by our ongoing commercial loan growth, which resulted in the second consecutive quarter of total net loan portfolio growth. However, this loan growth was not quite sufficient to offset the market-driven yield declines we and others are experiencing on new and renewing loans and the expected continued runoff of our legacy residential mortgage loan portfolio. As a result, we reported a modest decline in net interest income for the quarter."
Mortgage Revenues Showed a Substantial Increase on Improved Profit Margins and Higher Loan Sales Volumes
Primarily as the result of increased mortgage revenues, non-interest income increased to $4.6 million for the quarter ended March 31, 2013 compared with $3.6 million for the quarter ended March 31, 2012. Mortgage revenues were $3.1 million on loan sales of $350 million for the quarter ended March 31, 2013 compared with $1.9 million on loan sales of $309 million for the quarter ended March 31, 2012. The Company also saw a 5% increase in linked-quarter mortgage revenues.
Mortgage loans originated for sale totaled $310 million for the quarter ended March 31, 2013 compared with $307 million for the quarter ended March 31, 2012. The low level of market interest rates continued to fuel strong demand for mortgage refinancings during the March 2013 quarter. Also, the Company continued to experience strong demand for loans to finance the purchase of homes. Mortgage loans originated to finance the purchase of homes totaled $123 million, or 40% of total loans originated for sale, during the quarter ended March 31, 2013 compared with $118 million, or 38% of total loans originated for sale, for the quarter ended March 31, 2012.
The net profit margin on loans sold improved to 0.90% for the quarter ended March 31, 2013 compared with 0.61% for the March 31, 2012 quarter and 0.81% for the December 2012 quarter. The increases were primarily the result of improved selling prices realized from the Company's mortgage loan investors and the continued control of costs to originate such loans. Mortgage loans held for sale decreased to $144.0 million at March 31, 2013 compared with $197.9 million at December 31, 2012.
Douglass noted, "We are delighted to report our eighth consecutive quarterly increase in mortgage revenues. We are also encouraged by the recovering housing market that has resulted in increased home purchase activity. While the percentage of loans originated to finance home purchases remained almost constant with the December 2012 quarter at 40% of our total residential origination volume, it is important to note that this percentage grew to 51% in March 2013 and approximately 62% so far in April 2013. Given all that has been written about the projected decline in future refinancing demand, we are pleased to see the pick-up in loan originations related to home purchases that we are currently experiencing."
Non-Interest Expense Declines from Linked Quarter
Total non-interest expense was $9.1 million for the quarter ended March 31, 2013 compared with $9.9 million for the December 2012 quarter and $7.9 million for the March 2012 quarter.
Douglass observed, "We saw non-interest expense levels drop closer to what we expect to be a more representative quarterly run rate going forward. This drop was principally due to significantly lower foreclosure costs compared with the previous two quarters. In those previous quarters, we incurred higher costs as we disposed of and prepared properties for future disposition."
n1 Lol. confuse 'em if not convince" approach some market participants are taking?
I think the voice of the equity holders can be heard somewhere between this paragraph. Would you agree? Can equity be considered general unsecured creditor if someone's arguing if trade creditors, vendors, suppliers can get something out of the POR, why not us? What is the difference between them and us? Argument like this- can equity holders bring this agenda? Thank you.
Throughout this case, the Committee has maintained that there is substantial value
for the unsecured creditors. The Debtors’ unsecured creditors are responsible for a material
portion of that value since it is the Debtors’ vendors and suppliers, with whom the Debtors seek
to continue to do business (the “Trade Creditors”), that provide the product and the trade credit
which the Debtors so desperately need. The Debtors and the Ad Hoc DIP Lenders have
acknowledged the essential nature of the Trade Creditors to the rehabilitation of their businesses,
however, the Blacklines of the Plan and Disclosure Statement do not reflect consideration for
that value, nor do the recoveries afforded to general unsecured creditors (both Trade Creditors
and other general unsecured creditors) reflect the intrinsic value of the Debtors. The Committee
will not consent to such unfair treatment.
Can equity be considered as other general unsecured creditors?
I have few more for you and may be you decided whether to keep or not. But here are my picks..
1. YRCW - #4 trucking company. Operationally improving. Getting better deals with labor union in terms of pay and benefit and this has helped them to reduce significant expenses. A 1 billion dollar company sitting under the market cap of less than 100 million.
2. ESI - ESI is similar to CECO. ITT tech. They teach valuable courses- like Computer science, network security, linux, database, ett etc - all needed for the next generation of computer labors - nursing for retired people- drafting for manufacturing designs etc as well as Business Admin. 60 years old company. They have seen this type of industry fever before and they'll get out of it. They have enough of margin if you pay a very close attention to what they have (very undervalued assets).
3. COH - Coach is a global brand that many still don't realize it is. Coh is the already a top brand for middle class women all around the world. Watch COH grow from 14 billion to more than $50 billion in the next 5 years. COH is not only popular in the US. I word the wrong word "popular".
4. PRMW - Pay attention to this company. You won't believe that I have their product and it stopped working after a week. That's the worst part of this company. Their product is not reliable. However, I see their product in places like Costco and Office Max. Which tells me that their distribution network is great, compared to their production network. If they improve on quality, PRMW will be a multi baggers in couple of years. Their revenue is increasing. Just keep in the watch list for any company information.
Hello all, since the topic here is about bank, you may get more ideas out of this read on finding further opportunities..
http://www.therealestatebloggers.com/housing-general/u-hauls-top-10-us-destinations-for-2013/
if you like to explore further with your particular choice of city, then you may "like" the facebook page of the local biz newspapers (through wiki - media you can find biz links) and then it gives you all the latest and the greatest business deals happening across the city. You scroll down and get the idea on which direction the economy has been going on since the past - whatever facebook page feeds are available. If you find this post inappropriate, please dis regard.
I always wonder why old people drive slow in the highway. Not that they can't press that damn accelerator - I think they choose not to. Coz they're not in a hurry anymore.
do your own upgrades and downgrades perhaps.
Its a durable business model - serving students from one generation to another. I bet that one day youtube videos about "abcd" songs will surpass "gagnam style" or other hit videos in the long run. Say, 10 years from now. Its because all the infants and small kids are tuned to such videos. SCHSQ biz model is durable in that aspect. They probably had a number of unfavorable contracts which they wanted to get rid of for a while and wasn't happening.
I thought this thing I was reading may be useful here in SCHSQ scenario.
Consistent with the idea formulated by Bolton and Scharfstein (1996) that higher concentration of
creditors in the capital structure lowers coordination costs, we find that higher creditor concentration
reduces the time the firm spends in bankruptcy. Not surprisingly, this result holds for firms filing a prepack/
prearranged bankruptcy; when creditor concentration is high, the case length is almost of full year
lower than traditional non pre-pack/prearranged filings. But we also find that the concentration of
creditors has a significant economic impact on the duration of the bankruptcy process independent of the
pre-pack/prearranged outcomes. Noticeably, the effect of the concentration of the voting classes has a
particularly strong impact of the time the firm spends in bankruptcy process. For instance, a one standard
deviation in the concentration of the voting class reduces the time in bankruptcy by roughly one quarter.
24
Three of our outcome variables are related to how a firm exits Chapter 11: through a traditional
reorganization, via a 363 sale to a strategic or financial buyer, or through a piecemeal liquidation. We
find that higher creditor concentration lowers the likelihood of a liquidation but only through the
influence of concentration on observing pre-pack/prearranged bankruptcy, which rarely results in a
liquidation. However, the concentration of impaired creditors is an important determinant of whether or
not a firm is sold out of Chapter 11; higher concentration increases the likelihood of observing a sale.13
We also examine the impact of creditor concentration on firm-level estimated recovery rates to
creditors. As mentioned earlier, the estimated recovery rates are calculated based either on forwardlooking
estimates of enterprise value for the exiting firms in the case of reorganizations, or total cash
proceeds collected from a sale in the case of 363 sale or liquidation. We find that higher levels of
concentration are associated with lower recovery rates to creditors. This result is somewhat surprising
given that higher levels of concentration appear to lower ex-post costs of coordination, which should in
turn, lead to higher recovery rates. However, the recovery rates that we observe may also reflect strategic
interactions occurring between creditors at the voting class level.
Gilson, Hotchkiss, and Ruback (2000) postulate that the estimated value used to determine
recovery rates in a reorganization is itself an outcome of bargaining among different creditor classes and
managers running the bankrupt firm. This bargaining over value has strategic consequences because a
higher valuation implies more claimants are “in the money” and can therefore receive a recovery and vote
on the Plan. Likewise, a lower value makes more claimants “out of the money” and keeps claimants
receiving a recovery and voting on the Plan to a smaller number. These strategic considerations are
particularly important when claimants receive their recovery in the form of equity in the exiting firm. In
this case, the fewer the claimants receiving a recovery, the larger is the equity ownership stake for the
remaining claimants in the emerging firm. Because recoveries are based on the priority structure of the
debt, senior claimants stand to gain the most from a low valuation while junior claimants gain from higher
valuations. Consistent with this thinking, Gilson, Hotchkiss, and Ruback (2000) find that bankruptcy
restructurings in which senior creditors have more bargaining power tend to have lower estimated
recoveries, while restructurings in which junior claimants have stronger power have higher recoveries.
Thus, the finding that higher concentrated capital structures are associated with lower recovery rates
could reflect the outcome of bargaining in which concentrated senior creditors bias down the negotiated
valuation lower.
Appreciate your sharing. Have a good weekend.
I see some insider activity. Are you guys still following?
http://www.sec.gov/Archives/edgar/data/797465/000079746513000006/xslF345X03/primary_doc.xml
where do you get this headlines from? I can help you get more of these if you tell me how. I'm free all the time.
Lol. That was too funny! Now I understand banks..go go go..get that 2 dollar, faster faster faster..lol
This is one thing I've just learned, I hope to stick with this learning going forward because it is logical.
Buy stocks when the anticipation of a good news has already occurred and stock price is increasing but has not reached its expected benefit of the event - instead of - buy stocks when the anticipation of a good news or an event has not occurred yet but the stock price is moving on the rumor that certain good news is going to sky-rocket price. Something like this.
Status: The Debtors continue to be engaged in discussions with their key stakeholders to present a consensual disclosure statement and plan and anticipate that further revisions to these documents will be made prior to the hearing. However, this matter may be going forward on a contested basis."
So we either settle before the hearing and update the new version or if we don't settle by monday, do shareholders have someone to represent them? Are they part of "key stakeholders" or stakeholders but not "key"? If the matter goes contested, we'd be represented by someone? Thanks for sharing.
weren't you in at 13 cents? Why don't you just think about the concept of risk. You were in buying the rumor not buying the fact and you paid the premium and you're stuck. Makes sense?
Lesson for newbs - buy when the rumor about a positive event has already occurred and stock is expected to go further up not when the rumor about a positive event has not turned true yet and stock is going up.
These 1 million or so shares sold this week belong to frogs who jump from one stock to another, imo. I think they bought on the high, were stuck the whole week and saw different stocks in their screen in parallel - ready to shoot or already shooting. Couldn't resist and jumped with some loss, or the ones who got in even earlier and jumped now with whatever profit they could make cursing their timing of not selling high. We're left here the confused ones.
We're surrounded by highly educated, mathematically sound - financial shop lifters or pick pocketing group. They all wanna settle as fast as they can in Greenwhich Connecticut and build the next big house visible from everywhere. If somebody can figure out how to find out who bought all those shares last week- we may have a link to insiders. And shareholders may have a very credible case against insider trading by someone having fiduciary duty - buying on the basis of non-public material information. And they don't have to be the members of any committee. They just have to have substantial block of shares. Look at Washington Mutual for reference. I may be wrong but we may have a case and if we have a case, it may make substantial difference in the outcome of how current holders prevail.
Those agreements shared yesterday was signed on April 12th and these huge buys occured during the same time, i.e. April 11th- when it was about to be signed and on april 12, when it was actually signed. Just making a common sense approach.
Would you be interested in checking KVPHQ? I have bought some a few months ago. It's a biotech with a drug named Makena. March revenue was 7 million and 0 to 30 day receiveable is 16 million dollars. The went to BK just at the wrong time and as soon as they did, their issues started getting resolved. the more the company stays in bk, its better for the equity. I think. KVPHARMA.COM is their website. EPIQ has their court info. In yahoo, check the messages from cancunfish. Only very few people involved for the last several months in the discussion of the stock. Last year 50 people died because of meningitis. Compounders produced alternative drug to Makena which was very in expensive but turned out to be deadly. The news was all over, including CBS 60 minutes. Now states are ready to pay 600 dollars per Makena. I do not have enough experience understanding of court procedures to be certain about what will happen with KVPHQ stockholders but one thing I have noted from reading an article about equity recovery cases - is the current income stream should be getting better and better for equity to recover through POR during BK and a leader in a niche market (makena as only approved FDA drug). And here we have the case. The future of this company depends on who will inspect and control the compounding industry. Currently compounders don't give a damn about FDA inspectors as they say they are beyond FDA's jurisdiction. Will see. But check cancunfish's messages..he probably has about 20 of them.
The real stockholders of this company who bought last year, believing that they bought the company as an undervalued asset- get even crushed in this kind of a situation of volume buy/sell by insiders involved during BK. If you bring them to trial for insider trading, they answer "I don't remember or I don't know" to most of the basic cross question. Bunch of sociopaths with high level of education. And the definition of insider trading isn't clear either. Why make it clear like getting a speeding ticket.
those high volume buys were on Thursday and Friday. Here they sign this document on Friday. Insider trading or not? They could buy they could sell and we all wonder!
I don't know that part. I'm not knowledgeable just speculating. I am guessing like everyone that if the judge does not allow the claim, then we'll have rise in the PPS. But what after that? Where will the increase stop or logically where it should stop? And then after judge dismisses, how this will turn out for equity? Will they still not be part of the plan? I don't know about how this part goes.
Have you noticed vendor claims being transferred to Tannor Capital? Also there was one dispute by a business owner over the transfer of his vendor claim to Tannor. He mentioned that he was out of town and that his 2 employees who are working as secretaries signed the paper without being knowledgeable and authorized to do the same. This was for a claim worth 5K. I wonder why that guy was worried about getting his claims back? How much would have paid the bankruptcy attorney to file the claim, etc? If all is approved Monday, these have 0 values. I see few more claims being transferred to Tannor. So what is going on? Also more vendor claims being bought by Hain Capital at this moment, so close to the hearing. What made them to throw their money in? Roulette style? Probably not.
Thanks for sharing your experience. I ended up in the bankruptcy court for the same reason- continuous learning. Will share what I will learn but will take a while.
yes some lawyer guys do this kind of things with the help of accountant guys or the math or the behavioral scientist guys..they work together. There's a website called distressed debt investing .com. extremely educational. I love it..however, since i don't have the qualification to get in- i just collect the garbage they throw- which for me is valuable. 50 day old story of their research is what you and i can get. but those write ups are really good, somewhat like east and some other folks do their work and share over here. By the way, thanks to all the smart folks over here for your knowledge sharing.