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Still waiting for meaningful PR.
Guys, you know that this is total BS!
Maybe they should just liquidate the pig, render it down in its own fat, and serve it up to noteholders with barbeque sauce and be done with the masquerade.
Shareholders would get the bones to suck on.
Management would get the biggest bone to sit on.
IMO.
I wonder if the DOJ entered the fray because of the documents they raided Rotech for, immediately prior to the BK filing, and the suspicion that Medicare may be owed a lot of cash for overcharges. This has happened before, as you know. Then, again, maybe more is at play than has been announced, to date.
I do not recall the Linde article you mentioned, but I will do some digging on Friday... pretty full schedule tomorrow.
Carmen Lonstein is one very astute lady and should do a distinguished job representing equity holder's interests.
As for the "stalking horse" outcome, I explored this possibility about a month ago and conjectured that someone like Linde might consider making an offer where they could retire huge debt at onerous interest rates and replace it with drastically curtailed interest-rate paper. Such a combination could make a great deal of sense due to huge, overlapping redundancies that could be merged and purged, creating enormous SGA savings which has always been, IMO, Rotech's albatross. Compare ROHI's ballooning SGA line on the multi-year income statement spreadsheet to the largely static interest expense line. You will clearly observe that "legacy debt" is not the real culprit for the metric malaise that led to this BK filing.
Now for the bad news. It is my recollection that management conveniently buffed in the practical intent of a poison pill in its recent financings where either failure to use all funds committed or early retirement of notes created a penalty payment owed the lenders. Again, by recollection, this was a maze of conditions and contingencies that could cost any "stalking horse" candidate a huge, hidden penalty. Somehow, 6% comes to mind, though I could be wrong... I look at a lot of stuff like this.
I tend to think this buyout outcome is presently the least likely among all the possibilities because any outside buyer would almost surely jettison this management team and the entire Board and put an end to the gravy train, once and for all. These "smartest guys in the room" will fight to keep their perks, bennies and "award" shares in a born-again Rotech.
All, JMHO.
J.T., I hate to spoil your celebration but the outcome for current shareholders hinges on management and the lienholders agreeing to cut them in on at least a portion of equity in the restructured Rotech. If this happens, which may have been signalled by the company's statement regarding the recission of the 10 cent/share "gift", I would be astounded if the offer was for more than 1-2% equity. If the share price goes to $10 with the tier 2 notes retired, guess what... that equity is worth 10-20 cents!
IMO, the only significantly positive outcome for Wynnefield and the few other shareholders is to disrupt this speedy, pre-arranged deal and force everyone to be fairer to the interests of shareholders... or hope that Judge Walsh calls for mediation. Remember that a lot of Wynnefield's "crying foul" is tempered by the Form 4 reality that a bunch of their shares were recently bought at around 14 cents. It would be hard to plead convincingly that they got screwed badly or are entitled to some huge per share award or major slice of the future equity pie when they bought a lot of them for a pittance.
Think about it! I am trying to help you see how Machiavellian a deal that this really is.
Not showing any strength, an hour and a half into the open. Both the bid and ask are above yesterday's market close and still no trades.
Anything can happen as the session wears on, but I do not see this moving without some positive PR, which would NOT include news that Rotech is rescinding the 10 cent per share "gift" to shareholders.
NO PR released by Rotech or the expensive, Beverly Hills spin doctors, Sitrick & Company after todays Delaware court extravaganza. I would read this as a positive sign for shareholders and a negative sign for noteholders and the Board.
Maybe the Delaware Sharpshooters nailed a bullseye? Then, again, maybe it all went down in flames. It is a dereliction of duty, IMO, for a public compant to make no statement after a seminal event like today's scheduled court hearing which, among other things, was to determine DIP financing during due process. Then, again, this is the same company that promised a 10-K on April 16th and has yet to deliver.
Stinks, stinks, STINKS! Smells like a company that has declared war on shareholders as the enemy and a board of directors that has abandoned fiduciary responsibility, again IMO. I thought it was the responsibility of the board to represent shareholder's interests as the owners of the company. Silly me. I must have misread that chapter in Managerial Accounting when I was in business school.
Over 10 million shares traded today.
WOW! Somebody doubts the future and sold. Somebody likes the future and bought.
The sector remains weak compared to the broad market.
Guys, I think "It is on!" It appears that the creditors committee, not the same as the equity committee, has filed a court motion to hire general counsel to represent their interests. This, to me, signals a prolonged legal wrangling process, not a quick and cozy, pre-arranged deal between noteholders and the Board of Directors. Creditors were initially slated to be fully paid, so such an action today would only be appropriate if a plan disruption was in the works which management already threatened could jeopardize the creditors getting fully paid if the cost of defending against the equity committee became too extreme.
http://www.bankruptcydata.com/BankruptcyDataNewsNEW.asp
Comments or updates certainly welcome.
Yes, a Delaware Sharpshooter is in the house... or in the courtroom, today, representing the equity committee and, thus, common shareholders, all.
Carmen Lonstein is the lead attorney appearing before Judge Walsh.
http://www.bakermckenzie.com/CarmenLonstein/
This is not your garden variety, neighborhood lawyer contesting Uncle Moe's DWI.
On the downside, I read where Judge Walsh was quoted, when granting the one week stay for 2013 cash flow data requested by the committee, that he saw little value that such information would contribute to the discussion... NOT a good sign, if you ask me.
There likely will be PR, if today's ruling favors ROHI. Otherwise, it will likely be another snipe hunt for scraps of news like it was, last week.
I am watching CNBC where host Brian Kelly just conducted a panel discussion on the Feds cutting back on bond purchases as the first tranch of winding down QE. Steve Liesmann, the network's primary economist, reminded everyone of 1999... the last time a QE type bond buy was enacted... and how the market had what Paul Volker described as "irrational exuberance" and led to a runaway bull market that couldn't be sustained and crashed the following year because the Fed failed to wind down its buying spree. The Fed now owns between $3.5 & $4
TRILLION in purchased bonds that they had to print money to buy. Do you think taht's enough, yet?
Good luck, sir. Further dialog is pointless and, frankly, boring to other board readers. Your position is intractable and so is mine. Time will adjudge who was right.
Yank
Anybody think there will be news from Delaware, today? Anybody even still here?
robb, take a look at NTI per our earlier exchange.
Where do you glean "self congratulatory" out of my comments? I only pointed out my history with AGNC as a counterpoint to your earlier statement that I must have some agenda, which I do not. I actually like the company, I have owned it for years and I am neither a basher or a short. Period.
You are entitled to your opinion on the upside. I am entitled to my opinion on the downside. Do your own DD on the Fed. I have already told you where to go to get what you asked for, plus it is all over the WSJ, Barrons, Investors Daily and was a big topic on CNBC. I'm quite sure you also could Google "quantitative easing" and find it there as well.
And do not presume to know or assume my position on either Ben Bernanke or Fed policy; the truth is, IMHO, that Fed policy was a key element in our weak economy navigating the recession with only moderate damage. I think Bernanke deserves a medal for perservering under the crushing criticism of Rand Paul, Paul Ryan, Michelle Bachmann and others in the political landscape.
Yank
First of all, mReits do not "buy at short term rates and sell at long term rates." They buy longterm mortgage paper and finance with borrowings at present market rates, making their money on the spread as their borrowing costs are generally better than the mortgagee's rates. As interests rates rise, the paper available for purchase is fixed but the mReits cost goes up. This shrinks the spread and compresses the income.
mReits and specifically AGNC also sell "rights" offerings to generate cash, equivalent in effect to issuing more stock which both dilutes the shareprice and the dividend. In a rising interest rate market, the income "spread" tends to be lower than the old inventory that eventually matures and drops out of the portfolio. Thus, rising interest cycles tend to have negative effect on rights-funded capital returns.
The Feds actions have been all over the business pages for days. You can either go to Yahoo Finance/AGNC and a half dozen links will confirm my comments on QE. Or you can go to Barrons.com for yesterday, May 13 and link to either "mReit Funds Getting Whacked Again, Fed Worry Trade is Back" or "Mortgage Reits Fall As Fed Weighs Tapering Bond Purchases".
I have owned this stock on and off for over 5 years and have made a ton of money on it (and other mReits, as well). However, I sold my position, will not be opening a new one anytime soon and I sleep well at night. If you want to call people out for commenting on widely circulated news items you missed, so be it.
Yank
The divvy at near 5% is attractive, but you can do better. I lost money on ADM during the lobbyist-steered ethanol meltdown a few years back and would likely not go back there.
I like to balance my portfolio with one or two high risk/high reward stocks like Rotech in, as Cramer would call it, the "Mad Money" category. There are a couple like this that interest me as extreme opportunities.
Keep ya posted.
Yank
The market looks forward and does not wait for news.
The high rate chasers other than newbies have largely bailed out and moved on to equity plays where the money flow is huge and the momentum has been enormous and continues. It's like 1999 all over again.
I sold all my mReits in October... mid six figures in holdings... and got into other stuff after a great 5 year ride. Since I sold, the S/P's are almost all markedly down and the divvy/distribution rate is very impaired. I owned 11 mReits, in total.
IMO, the glory days for mReits are over. The cache is gone. The bloom is off the rose. The divvy return is not sustainable as the value of the inventory cycles through and new ventures become increasingly less profitable.
Good luck, though.
I did not tell anyone to sell at any specific point in time. However, the S/P will cycle down on the ex-div date and who knows if it will recover. I think not, and so apparently do others as virtually every mReit was down significantly, today, and few have collateral divvy dates.
Do I think that raising rates will stimulate the economy. No. I do not. But the primary mission of the Fed is to control inflation, not make up for out of control government spending and a dysfunctional legislature that refuses to compromise due to gerrymandering for lobbying funds and idealogues posturing for extreme positions on both sides of the aisle.
Many of us do not like the 0% interest policy adopted by the Fed. And if you think it was prompted by concern for business growth, you transcend ignorance with total naiivete' since anyone with a brain knows the interest posture is only a subterfuge to conceal the cost of debt for the ballooning deficit, should a 30-year bond go from a shade above 3% to a more normalized rate like 5% prior to all the $Trillions in defense spending for The War Against Terrorism ("Mission Accomplished").
Sorry, sir, but "ignorant" and "naiive" is a toxic mix to many of us.
Sorry, but that is simply an ignorant post. The Fed's announcement that it would start curtailing bond purchases as part of reduced quantitative easing has been all over the pages of the WSJ, Investors Daily and Barrons for days.
Bernanke said he did not anticipate raising rates until 2015, but he cannot make any promises because a plurality of Fed board members is required to maintain or raise interest rates (can't go any lower than zero%). One whiff of inflation and you will see interest rates take off like Lindsay Lohan on a double margarita.
Have you set a time for your funeral, yet?
You should just turn your weapon on yourself and be done with it. Expecting this pig to pay off is like Martha Stewart believing she will find Brad Pitt drooling to take her out on some dating website.
Be serious!
For Annaly, a 1/4 point uptick from the Fed represents as much as 20% reduction in spread. God forbid that a tax loophole Grand Bargain takes hold and eliminates huge tax freebies for hedgies and mReits. In the latter case. that would be about a 25% reduction in distribution dimension to investors, leading to a concurrent reduction in S/P.
It's the triple whammy... higher interest... reduced spread... hemorrhaged earnings after interest and taxes.
I think you made a smart move. Good luck to you, sir.
The wind down of Quantitative Easing is the beginning of the death march, IMO.
This will close 2013 at below $12 per share. It has been a great run, but the sector is losing favor.
I could see this stock hitting as low as $24 before all is said and done. This sector is in jeopardy, in toto. The smart money bailed @ $36 and took years o0f high-value divvies and ran for higher ground.
I tried to discuss this earlier on this board but someone ruled the discussion "off topic" and deleted the thread.
robb, I am still sitting this out until the f/up hearing, or slightly beyond. Too many variables for my poor little brain to tackle. Could still go either way.
On the nat gas front, I certainly hear ya! I've got a huge gainer there, YTD, and the divvies just keep rolling in. You know!
I am still more interested in Rotech after the dust settles, if it remains public and if some debt gets retired and management gets changed out. This is a great business if led by someone besides "The Gang That Couldn't Shoot Straight."
Yank
Again, robb, you could be correct. But it is just not as simple as snickering about a 10 cent stock magically becoming a $5 stock. A lot of shareholders have ridden this down from much loftier heights, and the S/P was above $4 not that long ago, and was in mid-double digits following its prior re-org after exiting its prior BK.
Because financial metrics have not been forthcoming, nothing prevents the court from deferring on a decision until that little matter gets corrected. And "the smartest guys in the room" representing ROHI with a cleverly spun story of poverty might just get upstaged by a team of three sharpshooters appointed by the court to the equity committee and who might have either knoiwledge or a keen suspicion of how the new VA contract and the recission of the 36 month Medicare home oxygen ceiling might HUGELY impact metrics over the next 6 month window. Read the prior 8-K's and the last two 10-K's for detail, if you wish. I have.
You and I agree that current management is unlikely to be welcome by current shareholders of record under most any scenario. If the noteholder's applecart gets upset by an alteration of their little takeover plan, I expect that they will also turn on both Alsene and the Board. Now THAT would be interesting to watch!
I really think that you are naiive in thinking this court decision is all or nothing. There are a bunch of other outcomes possible, including out-of-court mediation which is not all that unusual in such procedings.
You and I have both been through BK's and we both know that most outcomes are simply not favorable for existing shareholders. However, I think this one has a different set of dynamics than most, and I am looking for a wild card to call out the shabby tactics I sense, IMO.
I think we will know more on the 16th which is, I believe, the next court date.
Well, robb, you could be right on tailwinds, but my current thinking is that the judge may smell "breaking winds" and conclude that the noteholders helped orchestrate this "emergency" in cahoots with management and, thus, cram down a settlement that wipes out half the second tier notes for half the equity shares and retains 50% ownership for today's common shareholders. Such a modified settlement would wipe out about 1/3 or ROHI's debt, a $20M/year approximate savings and should net a S/P at around $5 as a starting point. The downside is that Federal rules prevent another BK filing for 3 years meaning some dire event affecting Rotech would require a liquidation if stakeholders failed to agree on some mutually acceptable restructuring deal.
The interesting aspect to my hypothesis is that this action could actually conjoin the interests of note and share holders, both groups likely to feel pimped by the current board and management teams.
Proxy, anyone?
There is a lot of stuff out there, churning, regarding this deal. Some of it is hard to "get to" and some links seem to disappear right after being posted. Try this one...
http://news.zurichna.com/article/a21ba6602261c14beb0af4bb1385ceb/kodak-rescap-rotech-amr-lehman-ambac-cpi
I apologize in advance if the link does not post. You can Google it for detail, if you wish. It is from the Zurich in North America website.
The portion I find most interesting reads as follows: "As further evidence of insolvency, Rotech pointed to the second-lien notes currently trading at about half of face value." The notes are not due. It appears via the forebearance that the payments not being made on the notes are consensual, not neccesarily because of Rotech's inability to pay them (while they do appear to have lots of money to hire all these restructuring experts and spin doctors).
The notes on the open market are worth what they are worth. Unless Rotech defaults on them (due 2015, by recollection) or defaults on the stipulated payments (not a voluntary, pre-arranged deal) out of necessity (absolute inability to pay)... who cares what the notes might be worth, today? It appears that shareholders interests are being 100% discarded so that noteholders whose interests are impaired by 50% today, per Rotech's own assessment, get immediately and fully restored years before the notes are due for settlement at maturity. The real issue, IMO, is what impact the new VA contract and the recission of the Medicare home oxygen 36 month cap have on financials prior to these notes maturing. Could it still be a basket case? I truly do not know.
Fair warning to all: I am still very angry over message purging. Think twice before this board goes dark.
Yank
I came across something today regarding Rotech's bankruptcy that some might consider to be a bombshell. It is lengthy and I won't retype all that verbiage, but if I post a link, will my message get killed and do I run the risk of being banned by IHub? I have already had messages eradicated on several IHub boards, including this one, and had my posting priviledges suspended for a sustained period of time. I am now afraid to post most anything.
Maybe it all just isn't worth the effort, guys. All this "intrigue" over what is and what isn't within the purview and permissability of Terms of Service has moved beyond the realm of reasonable discourse and is now, frankly, just pissing me off as bizarre. It actually creeps me out.
What robb posted was highly pertinent to Rotech's bankruptcy and the prospects of shareholders. To claim that it was "off topic" is utter rubbish and deleting this info HARMS shareholders wrestling with what do with shares in this bankrupt company. This is not administration of message board integrity, it is censorship of relevent information for some reason known only to the deleter.
Who has the gonads to own up to deleting robbay's post?
To J.T.'s point, I reported one poster for dropping the "F" bomb, not masked as a near hit, but the actual, fully-fledged "F" bomb in all its unedited glory. That post remains intact, today. But robb's post gets deleted? That's just plain crap.
Robb, just so you know... you can possibly appeal the deletion, although often the ability to do so is blocked by someone who has already rendered an ultimate decision in your "behalf".
robb, I thought I saw a post from you yesterday afternoon that disappeared... thought maybe you had asked for its deletion. I guess not.
What a shame about IHub and the "management" of expression.
GLTA,
Yank
It appears that on or around April 18 the OTC Markets downgraded ROHIQ to Pink Sheets status. I find it highly unusual that such activity went unreported and, hence, unnoticed. My understanding is that Pink Sheet status obviates the requirement to file audited financials with the SEC which could explain the vacuum of filings since the last 8-K in early April.
IMO there will be no more financial detail provided investors or the equity committee (if it remains intact) until the court renders its BK petition opinion. The court may have the right to demand updated financials, but I am not fully clear on the company's actual need to comply once dropped a level below SEC-required reporting.
It strikes me that management has meted out info to select parties and kept "others" in the dark while it "negotiated" this deal. Some people might call that a "conspiracy"... others like me might just offer the opinion that it STINKS!
investor, it is my opinion that the the urgency to file was opportunistic, or possibly better described in other unsavory terms. Rotech's own slideshow clearly states management's recent opinion that reimbursement cuts could be offset by increased volume. This explains J.T.'s frequently asked question regarding why ROHI made so little noise regarding the new ROHI contract.
They also have not talked much about the possibility you raise of Congessional intervention on reimbursements and the CMS bidding process. I won't put a probability on that one, but I would point out that the legislature backed down on cuts to medical reimbursements to doctors and hospitals, earlier this year, under pressure from the AMA and other lobbying groups. There is, for certain, a lot of discussion in D.C. on this issue, as you have been pointing out.
I think that the real smoking gun may be the re-eligibility for Medicare home oxygen care as providers re-enter the next 36 month window which should be in 2014, as I recall. The loss of this volume was earlier cited by management as the reason for revenue decline in prior years, and now management declares that volume weakness is a cause for the insolvency.
In Alsene's 65 page declaration to the court supporting first day motions there was an extensive section on management's attempts to mitigate reduced reimbursements by reducing SGA expenses. Claims, by my recollection, were that substantial efforts contributed large offsetting cost reductions, but unfortunately they were just not enough to cope with the reimbursement reduction mandate from the Feds. Right? Please feel free to correct me if I am incorrect.
So... someone please tell me which numbers are correct? Are they the claimed SGA reductions in Alsene's declaration to the court... or... are they the numbers recorded in SEC filed financials that showed SGA @ $255,952 for FY09, $262,332 for FY10, $253,020 for FY11 and $201,791 for the first 3/4 of FY12 (Q4 and Y/E figures not yet released? Too many numbers do not add up, guys.
Something stinks! You just can't make stuff up and "spin" it whatever way you want when submitting figures to either the SEC or a senior bankruptcy judge in Delaware, IMO. Which scenario is truthful? SGA discipline and savings as inferred in the declaration, or runaway SGA as a % of revenues in the so-far released SEC filings? I could be wrong in interpreting these numbers, but it seems to me that a huge disparity exists in these two company/management positions on the selfsame issue.
Which one is right? Anyone?
Actually, J.T., that kind of manipulation is less rare than you might think. I have seen this type of crap and MUCH worse in trading Chinese microcaps on which I have both made and lost money. In the case of China, it's not only the PR that is suspect, but is also the financials which are routinely rescinded or grossly modified, after the fact.
This one is too large to not be under scrutiny, to some extent. Whether it is a Barron's novice reporter with aspirations of greatness or even a blogger from Motley Fool or Seeking Alpha, somebody is going to do a deep dive on this one because of the money players here, and the pedigrees of Board members like Reimers, once the dust settles. Maybe it will even be the U.S. Attorney's office or the AG in Florida who decides that the little guys got trampled by big money and influence not gifted to the ordinary stakeholder.
This is like watching Michael Douglas playing out the sycophantic greed mantra of Gordon Gecko and taking other's pants down because they couldn't be so Machiavellian or ruthless in investing strategy. As for me, I'm keeping my pants on, thank you very much.
Welome back, J.T.! However, while I normally would agree with you on penny and pinkie stocks, I think ROHI is just plain different. Look at the "money players" here: Barclays, Deutsche Bank, BNY/Mellon, Goldman-Sachs... this is not the financial backbone of very many penny-plays. Agree?
This is a delisted NASDAQ stock and has an enterprise value to the moon if it deleverages. Agree?
And this OTC chameleon has a skinny float of 26M shares held by just a few players. Agree?
So, you tell me... how many penny stocks have the likely outcome of going from $2.6M in market cap to around $260M in market cap in the next 90 to 120 days? Many? Any?
That is the crossroads at which ROHI has arrived.
This is not your usual penny play. It may, in fact, be a roll in the gutter with some very distasteful people involved... I just don't know... but there is a big payday pending, potentially, for somebody. And some big potential losses for some, or even evryone, depending on the final outcome.
But no matter how I slice and dice it, Rotech is worth more than the casual quick-look-and-decide startegy. I don't begrudge you the right to do that if you wish, but I intend to get a little more in-depth because this actually could be something meaningful with the right play if deception can get culled out of the discussion and endgame.
All JMHO.
Glad you are back.
Yank
Actually, robb, the judge has the right to cite perjury or contempt of court for a variety of problems, most of which subsequently can lead to repealable counter-actions by the debtors in a bankruptcy requiring additional court procedings to resolve. Also the judicial latitude afforded includes "cramming down" conditions on both secured creditors and lenders, even secured ones, and the judge always has the right to reject the petition for bankruptcy and mandate several outcomes including ouright denial of petition in toto and/or court-ordered mediation to resolve claims and counterclaims of stakeholders.
I have followed many BK actions over the years, including one administered by this judge, and there is no way to predict the outcome. However, the judge can have a LOT of impact on the eventual decision, and this judge is highly experienced in much higher profile cases than Rotech.
I have read two rebuttals from the equity committee, so far, and they are well presented. So is Alsene's filing in support of the first day motions. This would be expected since both sides have skilled counsel representing their divergent interests and positions. But my sense is that this judge will not be railroaded into some arbitrary, "quickie" decision despite the dire claims of Rotech management if any delay happens.
investor2004, if you read the 65 page filing, I would be interested in hearing your thoughts on the other 2 players besides Wynnefield on the equity committee. Who are these guys?
As a follow-up to investor's link to the BK filing I am posting an additional link to Alsene's declaration in support of the first day motions. Buried in the middle of historical and incredibly boring procedural info is a concise, seemingly factual rationale explaining why the company chose this course.
http://bankruptcy.morrisjames.com/uploads/file/Rotech
I have had problems with this link all weekend, so you can also Google it under Rotech Barclay's and look for the morrisjames item (was on second page). It's 65 pages, too lengthy to reprise and too many trees killed to print out.
If all this stuff is true, and I am neither challenging or affirming this, then one thing everyone can agree on is that management did a horrendous job of communicating risks to shareholders, IMO.
There is some very interesting stuff regarding the judge in this case if you Google "Judge Peter J. Walsh". This is a VERY experienced senior bankruptcy jurist with loads of experience in a bunch of very high profile cases in cluding TWA and Montgomery Ward where, in the latter case, he actually led for a break up and sale in lieu of a re-organization.
Very interesting read is a paper he wrote to the court dealing with first day dip financing and his specific comments on NOT impeding or infringing on the rights of creditor/stakeholder committees. I think this offers a pretty strong indication of how the judge may rule on Tuesday.
This guy is no dummy. He will not be easily misled or swayed by the Rebecca Myers cabal pushing Rotech's "quickie divorce" from today's common shareholders, IMO.
Thanks, everyone, for a great conversation today spanning lots of worthwhile areas. This is what message boards were intended to provide, IMO. I think that the update which joey kindly posted speaks volumes about the gloves coming off and a bareknuckle fight coming in the days ahead. And I agree with investor's comment that this is a positive sign for common shareholders, that in essence the fight isn't over but just beginning. I am not recommending that anyone run out and buy shares at this point, but I would say that my earlier advice to hold what you have makes even more sense until this plays out to some level of definition.
I think that management may be flirting with another huge headache by failing to release audited financials for Q4 and FY12. The last auditor trued-up figures filed with the SEC covered the period of Q3 which ended in October. We are now firmly into May. That lapse is clearly unacceptable for any public company, but COULD be considered something more serious in this case where huge swings in share ownership have occured, seemingly spurred by company PR announcing a BK with no audited financials to explain the urgency for a cancellation of all but 10 cents of common share equity.
All JMHO.
GLTA.
No, it's not manipulation. This is all just retail bit players dabbling because they like dope.
You want big players and volume trading? I do. Then begin to run this like a big business with legitimate opportunities in legal marketplaces... not the "snicker" and innuendo plays to head shops and stoners.
There is a huge potential market place for medical THC. A team of pharmacological scientists should be camped out at the FDA with charts and graphs out the wazoo showing how non-addictive THC can be used to replace addictive opiate-derived painkillers that are way over-prescribed in America, creating an enormous gray and black market of abusers, junkies and dealers.
These "High Times" marketing adventures that PHOT seems to adore only paint a negative facade on what could be a legitimate business by obscuring the medical opportunities and by courting the glassy-eyed rolling paper/bong counter-culture that will only rile up the DEA and reduce all serious discussion of PHOT to midnight cellphone rat-outs to narcs and undercover agents intent on shutting the venture down.
Sorry, maybe I should have waited until 4:20 to post this.
This is a report from a week or two ago. I think it will take many months or even years before the lobbyists gain a plurality in Congress to make constructive changes to the bidding protocol. CMS is no virgin to the nimby (not in my backyard) scenario where everyone wants some ELSE to take the hit for reimbursement cost. It's like the "Let Mikey Eat It" cereal ads of yesteryear.
The lifecycle for Rotech's BK is around 90 days. Whatever outcomes change from these discussions, they are likely to be immaterial to shareholders who shortly confront a dime and cancel ultimatum on their investment in Rotech.
All JMHO.
Has it occured to any of you genius daytraders that Exide is on the brink of yet another bankruptcy? They can ill afford another class action settlement. They likely can't afford to remediate the problesm in the Vernon smelter, let alone pay the inevitable fines for gross violations of California's strict environmental statutes. Then there is the onerous cost penalty to replace in-house recycled lead with outsourced lead, either of virgin or non-tolled origin?
This is a three-way bleed.
This company has been run by idiots for the last 20 years and the combined leadership has created so much collateral damage that even all the king's horses and all the king's men couldn't salvage its sorry butt. The genuine insanity began when Bob Lutz and Craig Muhlhauser bought GNB and created the biggest oxymoronic joke in business history:
Exide + GNB = Exide Technologies. All the old lead acid guys just continue to laugh their ass off at the stupidity that destroyed an entire industry by throwing so many players into the acq blender and hitting the frappe' button. Hey, these fools weren't content to simply trash the U.S. battery marketplace, they enhanced the morass by destroying the Eurozone and even the former Chloride empire spanning lots of Asia and Australasia.
As Adele opined, "We could have had it all" but, instead, wound up with a bodybag of rotting corporate entrails.
What an utter, total, pitiful waste of what were a lot of really good businesses until Hawkins and the ensuing parade or morons turned Exide into a joke of epic proportions.
Only a fool would consider this sick pup an "investment".