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Thats about the size of it minnesinger. We all bought into a
"story" that seemed plausible back in Feb-April. However Newton was dilusional to begin with and then the housing melt-down in the housing sector for speculation developers killed this thing. With the credit markets in the shape they are it is going to take a developer with an extremely pristine balance sheet and high net worth to cover a spec loan from a bank.
You would think that perhaps North Carolina might meet that criteria but then again they could just back away and wait a few years. There is nothing to be gained by putting up a $200M development in this market. There are 6 million unsold homes currently in the USA for sale. That is a huge inventory and it is clearly a buyers market. Developers if they can gamble will sharpen their pencils and get new bids and that leaves IWS vulnerable to competitors IMO as they scramble for
revenues. Many sub-contractors are going to go out of business in this environment. Credit is extremely tight.
Even companies selling gold, silver, precious metals and even oil with a known demand for their products are suffering a capital crisis. I am in one of them GMO with $40B in moly reserves and $200M in the bank with strategic partnerships to sell 30% of their production starting in 2010. That stock is
way way down but have made good money on it over the past 2 yrs. playing these ups and downs. RCCH has a product but right now the demand is not there. Will it ever be? Of course if they can survive and that brings up the issue of investor confidence
in supporting their activities. I would much rather buy a LEH on a gamble than this and just bought back in....pending news.
"Policy to use conservative estimates" is another one of those phrases they all say. Every darned one of them. They want you to BELIEVE in their story and support the stock. Lehmans had a great story as well and actual assets worth perhaps according to them $644billion dollars....however debt is $335B and their assets mark to mark are in question. They could very well have a net negative worth just as RCCH does. However, someone may rescue Lehmans yet. I see you played it this morning....all good bro.
CNBC reports that Lehmans could have had a deal either with the Korean Investment Bank or JC Flowers over the weekend. They nixed the KIB because the price was too low they thought
and JC Flowers was a matter of pride. LOL.
Watching it closely for further weakness. The new CEO is impressive coming from GS.
The KEY WORD here is PROJECTS. Anyone can issue something like this and use the word "projects". Happens everyday in the pinks. Even if they said they had actual rev's of some kind it is subject to close scrunity as someone pointed out today even audits can be fallicous.
You have your opinion and I have mine but it too late for me
to bail at this point. My opinion is they will reverse split at some point in time to get the pps back up and then try and ride that for as long as they can. In the meanwhile the developers who did have committments for funding their projects are likely to get a phone call from their banks today telling them the terms have changed or perhaps been cancelled all together. These types of loans are exactly what the banks don't want on their balance sheets as the debts are being severlly discounted mark to mark today and for the past 90 days.
As I said, wouldn't hang my hat on the 2 week time-frame. More than likely it will remain on the pinks well into Q4 and IMO may never get out of that exchange. Luckily for us the lowest you can go without an reverse split is .0001. If Newton gets desperate he will r/s, rinse and repeat to buy more time. That is a better reality than what some folks are suggesting. He needs cash to operate and for the life of me I see nothing to suggest any revenues are coming in. Sorry to rain on your parade but that is just the way I see it.
I hope your point of view has something to it but I doubt it seriously. AIG now down down 56% just this morning. This is what happens when there is a crisis as to credit stability. Now AIG is down 70% to the $3 range.....and this is the largest insurer in the USA.
NP sir. Who in the world has the conviction to dump 60M shares at .0001? Retail longs? I think not. Good luck.
Has anyone considered the possibility that Newton is paying for services to uplist with common shares which are then dumped immediately on the market? He closed the T/A on 7-29 to hide the O/S IMO. You got to wonder why then. In my view it is because of this reason. If you wake up and find your
O/S is 1B+ don't be surprised bills must be paid for services such as uplisting. Selling shares on his ATM machine is likely his only source of revenues. I think people need to consider that possibility here.
The average market cap of companies on the TSX Venture Exchange in Canada is $27,000,000. How does a company like RCCH with a market cap of about $35,000 make such a transition?
Some say wait for the audited financials. LOL on that. There is no proof they even own IWS at this point let alone hold any
interest in other companies. It is all smoke and mirrors. I
would imagin that RCCH is essentially bankrupt but they have their ATM machine still in operation for now at least.
The cost of trying to move to another exchange are staggering and they could have used their money from investors far better
to keep the lights on.
The collapse of Lehmans brings a company like RCCH into far
clearer focus. Then the collapse of AIG the USA's largest
insurer this morning adds further clarity to the situation.
In this market it is all about the cash I don't think Newton has any left after paying the 9 attorneys, auditors, accountants and advisors he added to the payroll in May.
CNBC has a special on Lehmans right now. Forecasting BK tonite before markets open.
BofA said to have $29 buyout of Merril Lynch on the table in a stock transaction.
FEDS reviewing counterparty contracts LEH holds with others and loosening some rules.
Great game between the chargers and broncos just concluded
39 to 38 broncos.....went for 2 pt. conversion with 24 sec. left in game. It was a dooozy.
Thanks for the report on LEH. I was listening to CNBC and a guy who had called the meltdown of Lehman said that he thought the FEDS would try and insure that it continues in business but doubted they would bail out shareholders whatever that means.
I did see some kind of trade reported on CNBC for LEH and it showed $3.20 down 18%. Don't know what exchange they got that off of. Perhaps some pre-market somewhere.
Greenspahn again on CNBC repeat on Freddie and Fannie situation. I think the FEDS did a good job there with the actions they took. I hold both now.
Sorry to hear that. There always a chance for an 11th rescue I suppose. I heard thru the grapevine that there is supposed to be a news conference at 8:00PM EST tonite. Been unable to confirm it:
http://biz.yahoo.com/rb/080914/lehman.html?.v=8
It should be here if there is something further:
http://www.marketwatch.com/
Yes, some of their assets are desireable but that MBS biz is just a mess. No one wants to touch it. The CEO is going to be toast over this.
Maybe but the Lehman fallout is just starting IMO. Look at the dollar in international trading Monday:
http://www.reuters.com/article/marketsNews/idINWEL00075020080914?rpc=44
And we thought the pinks were treacherous?? Well they are bad but this could get real nasty before it's over if they file BK.
I don't have Bloomburg on my cable and CNBC is out of action until tonite.
I wonder what happened to JC Flowers and that Asian Bank...did they bail out of the talks too??
I hear ya peb. Well it looks like we will know tonite if there is a BK filing or not. Didn't realize the Federal Courthouse was open at that time. Must be some special provisions made in such cases.
Actually I cannot imagin the fallout that is going to hit the financial markets if Lehmans goes belly up. That is going to
cause a great deal of Fear Uncertainty and Doubt in world capitals of government. The Germans have some exposure there.
If there is no BK filing by tonite perhaps we still pull out of this without too much damage and a deal of some sort struck.
I am surprised that in the entire world we can't find a group of buyers willing to take apart Lehmans.
I thought for sure with the FEDS involved this would work out.
I read there are 411,000 shareholders in Lehmans common and
that works out to an avg. of 1,670 shares each. Well we know that Sorros and some other investors have millions of shares.
A Lehmans BK filing is going to shake up investors of all shapes and stripes including me. I lost once playing United
Airlines went it went BK. Finally got zero'd out on that deal as I didn't sell for pennies.
Looks like we might have made the wrong call here buckeye about holding over the weekend. A BK filing possibility is just terrifying. I am putting in a qued mkt.sell order which I will re-evaluate before the open tomorrow.
http://biz.yahoo.com/rb/080914/lehman_specialsession.html?.v=4
Thanks peb. We still have some hope someone can put a deal together but the noose seems to be tightening. I especially didn't like that talk about a possible BK filing by 11:59PM EST tonite.
Now Barclays and BofA out of the picture apparently. Guess that still leaves a couple of players from what I have read.
Where is Warren Buffett when we need him??
Heck it looks like BofA is out of it too now in talks with Merril Lynch now on their own merger:
http://biz.yahoo.com/rb/080914/bac_merrill.html?.v=1
You have any links to follow NZ or Tokyo action?
I believe they are 12 hours ahead of us so it would be 1:00AM there in Asia. So tonite sometime we should see the Asia market open. If anyone has a link please post it.
Nope. The game of chicken continues....who's going to blink first...LOL. A BK filing is not to my liking.
Good post chuck. CYL.
If this happened to "come back for investors" then we all stand to make money if we hold and wait. I think I will do just that with my core position and continue to flip for 10%
moves where possible on a couple thousand shares. GLTA
Yes, I know what you mean about watching the hours drag by. Had hopped for a resolution today by this time. Looks like it might be a piece-meal breakup after all. I have very uncertain how such an arrangement might affect the common stock.
It is nice to see so many big-hitters in the common and hopefully they will look after our interests as they look after their own....LOL.
Articles on a bailout like we saw with Bear Stearns are saying Obama and McCain both opposed to such introvention. Looks like the big players are playing a game of "chicken" with the US government over possible assurances and guarantees concerning uncertainties on the books of Lehmans.
On the surface it looks like Lehmans CEO made a huge mistake in buying into billions of assets which apparently have little mark to mark saleability in the current economic climate.
I see their MBS portfolio may be $600B and their equity is just $30B meaning they have leveraged at 20:1 in this particular segment of their business. Major MBS companies such as Annaly Capital (NLY) use a ratio of 10:1 maximum.
Barclays shareholder vote requirements seen as obstacle they could not overcome in the time period given. Wallstreet Jour:
http://online.wsj.com/article/SB122139688846233147.html?mod=yahoo_hs&ru=yahoo
Thanks for the news on Barclays. I saw an article on them and their balance sheet did look to weak to play in a Lehman sale.
Sit tight with LEH?? Hmmmmmm. This article from your link:
http://www.cnbc.com/id/26661459/site/14081545/
Go off the last reported O/S. Thats all you can do.
Yep if you hold more than 10% of the common you are under that obligation. Read the links I provided and google 10%+ ownership in a publicaly traded stock. It gets tricky at this level with this apparent low O/S. But actually to file is no biggy. It is free to file I believe....but I would do it just in case the SEC is watching. Good luck to you Durkk I deeply respect what you do on the boards.
They covered on 9-09 with the 220M shares traded that day. That is clear. That is more than 50% of the O/S as we know it to be. Many at .0001. It is a lotto play now....plain and simple. It is boxed in as someone reported the other day.
It will take a friggen miracle to get out of these slums we are in.
I know TRT.
The only problem with that scenario is what profits might those be? You are assuming there would be profits. That does take a lot of conviction IMO.
Thanks Tiger I was wondering if anyone was able to get thru to him.
So what is it that those in "the know" are aware of? I am most curious about this. Have you been in touch with Travis Grimmett in the last 10 days?? Please tell. What the heck is the big secret that only 3 people know about??
Do you have inside info that Travis found someone to buy up the other 34% of the company he claimed to be "the funding" source for??
If you happened to get a PR about that then you have to deal with the issue of what did he actually buy? An under-funded competitor in a multi-billion dollar provenice of giants is what it is all about. So what is OneFi going to do with the money if they get any from RDWG? Of course they are going to spend it on continuing operations for as long as they can. So far I have seen nothing that indicates they are getting any revenues for their activities.
Even if and that was a huge IF they acquired OneFi in some RM they simply don't have the capital to compete with the big players in this arena. If OneFi has anything really going they would be bought out by another player with real money. If they are just another me too player no will will care and they will eventually disappear. Their claim to fame is their software well guess what they have a couple of software guys but the big players have thousands of such engineers and more coming mothly.
I think you will find this was simply a story stock without legs. Of course it might run on speculation but in my estimation it is doomed to see the .0001's. Of course it is only my opinion
but I have seen nothing to suggest otherwise.
Thanks S&P raises target to $1. Looks like it has been oversold again. Thanks for the report. I have been busy on Lehmans and not following along as I should. Good luck to you in Spain....enjoyed the Spanish Rivera very much. Love your
numerous street stands for roast chicken and the chessnuts are great too.
More backround detail on Lehmans. We have 22 board marks LOL.
http://online.wsj.com/article/SB122109572989621863.html?mod=googlenews_wsj
I am familiar with Washington Mutual having seen their rate sheets on a daily basis for years. I would be cautious about the high LTV (loan to value) loans they have been offering on home mortgages. Those are yet to come home to roost totally.
As I recall they were offering 95% cash out to refi's and 100% LTV's on purchase deals. Those people are walking now and more will follow.
I am watching WM but I think there Q3 report is going to be a doozy to the downside and then Q4 and so on into 2009.
I doubt Lehmans bought any of that kind of paper but they might have and hence the steep discounts suitors are giving to their MBS securities. Reported to be $33B in marked value but who knows what the street would offer today? If we knew that question we would know what the big players are discussing today in NYC.
Well it is an intersting proposition for those with deep pockets. The MBS portfolio of Lehmans seems to be the stumbling block but perhaps a steep discount by 70-90% would persuade a wouldbe buyer. Someone is going to make some serious money on Lehmans plight thats for sure.
It is amazing what the short sale folks can do to a stock when the blood is in the street. If this goes down as I hope it will then Lehman shareholders could make substantial gains next week. If a deal fails to materialize you can consult the particulars on Lehmans financials strengths as reported by S&P and Fitch and then make your calls.
Personally I am lacking the funds to really load the boat on
Friday late in the trading day. But if I am right millions of dollars are going to be made by some traders.
You got mail bud.
Yeah, and the unusual agenda is held by the Kinstler bros.