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Ah, yes, the old "economy package"... that really cracked me up. Thanks!
Trading activity today mirrors yesterday's restraint. I think everyone has either bought or sold that is likely to, there are no weak hands remaining and even the market makers are sitting on the sidelines waiting for the next PR salvo.
Maybe J.T. or joey will have an update from the Dow Jones BK hotline which I would never use often enough to justify signing up for a paid membership.
Where's Carl Icahn when shareholders need an advocate? Does Nelson Obus have a brass pair or a tin cup? I guess we will find out in due course.
That's all interesting stuff and, of course, you could be right... but I seriously don't think so. Their is an air of cronyism between management and at least some of the noteholders... hence my occasional, sarcastic remarks regarding Goldman-Sachs and Reimers curriculum vitae. The noteholders have about 95% of the vigorish in this deal.
Secondarily, management owns scant shares in ROHI's narrowly held float. So, in simplistic terms, the shareholders might be better defined as major investors (e.g., Wynnefield) rather than true insiders. For a bizarre, Kabuki-theatre-style scenario to play out, you would have to ask why management and the Board would script so elaborate a misdirection strategy as you postulate, especially when they have nothing to gain and actually quite a lot to lose by crafting what some might consider an illegal conspiracy.
When it comes to deals like this, I prefer "simple" explanations to Bourne conspiracy theories. The "simple" theory is just what's on the table... a newly appointed CEO sees a quick fix for cost-bloated and highly levered company with a defective business plan and more limber, private competition by simply taking out the shareholders and privatizing ROHI before the improving numbers from new contracts and restored Medicare oxygen homecare numbers get revealed in future public filings, exposing the shabbiness of the deal for stockholders. Ridding the Tire 2 notes cleans up 2/3 of the balance sheet debt encumbrance.
To me, this explains both the haste for a quick-fix BK and the failure to make public audited financials available, not to mention hiring an expensive spin-doctor like Sitrick. It would also explain why management would be anxious to disband the equity committee since it could bog down a quick BK and risk having the improving numbers revealed.
And now that I read my own analysis, maybe my theory isn't all that simple, either!
All JMHO.
And now the waiting game begins...
Who will blink first? Wynnefield? Alsene? The auditors? The U.S. Attorney's Office? CMS?
Short interest is up and volume is down. This signals dead trading action until some news (or rumor) is evidenced. By the way, I did not choose the word "evidence" by accident, if you get my drift.
Why even Sitrick has apparently gone mute and its Hollywood PR juggernaut has gone into silent running.
The longer this goes without pro-BK-approval PR, the better things look for the "common man" IMO.
DO NOT PANIC, but do watch the news ticker and do have a hair trigger on the sell button.
Thanks for sharing that, joey. LOL! Where else can you have fun and maybe make some $$$ at the same time?
It just doesn't get any better than that!
Yank
Thanks for the encouragement. mReits were the bulk of my portfolio for the last 5 years and I made a ton of $$$ on them when all the "talking heads" and Seeking Alpha were telling investors to bail out and run for cover. Why would anybody by Treasury Debt paying 1.6% max vs. reits?
Makes no sense at all to me. AGNC is the best of the breed, IMO.
GL to U, as well.
Yank
Thanks. Positive suggestions, all. But if you actually read I-Hub's Terms of Service, discussion of related/competitive issues that are relevent are fully permissable.
If discussion gets crushed here, for OT irrelevence, the same thing will just happen elsewhere.
I hate to say it, but this kind of sophomoric censorship simply drives me back to Yahoo Finance and Raging Bull, despite their inherent problems of spam and childish garbage posts. Oh, and I forgot to mention the insulting comments that I was just a "freebie" so why should I have an opinion since I don't pay to post here. Hey, message received!
Hey J.T., whether you can post or not, I hope you are reading this stuff because THIS is what good old smash-mouth, roll in the gutter manipulative investment deals used to be like back in the historic era of Milliken/Ebbers/Kozlowski/Skilling/Madoff and the days of glory preceding the clean-up in Taft-Hartley-Rodino and Dodd-Frank. Why, I actually find myself reminiscing about Bernie Kornfeld and the other uberscumbags of Wall Street.
There is NO amount of DD that can predict the actions of management like Rotech seems to have uncovered by rolling over a rock to find creepy-crawlies like Alsene & Company.
"SUCH A DEAL!"
What a hoot, and what entertainment. You need to come back and share your opinion when your parole concludes on 5/3.
investor, this type of response is fully typical of what I would expect from a heavy-handed, Hollywood-style PR campaign being waged by Sitrick & Company to prop up Rotech's BK/re-org. Always remember that this kind of expertise comes with a huge price tag attached and no spinnable stone gets left unturned, though the PR that Joey posted claimed "poverty" and ROHI's "pitiful" inability to pay the equity committee's cost which is, I bet, a heck of a lot less than Sitrick's humongous fee to "manage" this spectacle.
The bankruptcy trustee should ask how the onerous cost of the equity committee compares to the cost of Sitrick's fees for PR. Now THAT would be illuminating!
I used to post here but got tired of being told my discussions of other, related mReits were off topic to AGNC. I also no longer post on the other mReit boards since almost anything is some arcane violation of TOS.
Maybe that explains why there is so little apparent interest in posting on most of these boards (?).
What a waste!
A lot of investors would have benefitted from owning AGNC and its liberal divvy payout over the last few years.
Then, again, some seem to enjoy "the thrill of shrill censorship" and the testosterone rush gained from shutting down a genuine investor dialog if it didn't originate with them.
Is or is not Rotech solvent? Hard to know since only partial and unaudited results have been issued, and required SEC fiings are late and the promised date of 4/16 from management has long since come and gone with no reporting or explanation.
As for the onerous cost of the equity committee, maybe this could be addressed by simply cancelling the portion of delevered shares in the new ROHI that were originally slated to be given to management. Yeah, like that will ever happen!
If management's excuse for bankruptcy is legacy debt, why did it refinance Tier 1 and Tier 2 debt a few years back? Why didn't it restructure at that time? And why did it not address its cost structure in the face of looming reimbursement cuts which the entire industry knew were coming? Why did ROHI continue to acquire more and more branches that required more debt and operating capital? Why did ROHI bid on government contracts that were so margin-compressed that the business pushed them into bankruptcy? How does the new VA contract affect future cash flow and margins? How much of the Medicare cap on home oxygen soon gets reinstated, as indicated by company PR? ROHI says no one wanted to buy the company because of its debt; did they ever engage a qualified advisor to explore options such as sale of all or parts of Rotech? Was the need for an immediate bankruptcy ever mentioned by management, other than prior to the refinancing of notes? If not, why not?
Many questions, guys. I am not holding my breath for any answers, any time soon.
All just my humble opinion.
Joey, retire the Tier 2 debt and give the shareholders a dime to blow them off with nothing, you reduce the interest expense from $60M to $20M and generate about a $26M profit or $1/sh which would equate to a $10 share price @ 10X earnings.
It's an unlubricated rape, IMO. And I suspect that it has been in the works for some time, cleverly steered by a B-o-D and management committee with a personal agenda... but what do I know? After all, I never worked for Goldman-Sachs so I guess I must just be deficient.
Yuck, yuck,
I think that you have possibly missed the main point. If Rohi fraudulently bid on contracts that it knew it could not economically fulfill, the staff is accountable for what it committed to the Federal government. People go to jail for fraud, if that is what this is.
The rest will take months to figure out, IMO. Who knows who is telling the truth, here!
Can anyone post a link confirming where Rotech previously stated that it was "hopelessly insolvent"?
Thanks in advance.
"Liar, liar, pants on fire"... Rotech BID on the Medicare contracts and failed to reduce costs to offset lowered reimbursements, even stating that it would make up the lost margin with additional volume, per the link I posted, earlier. Now it wants to blame Medicare for management's inability to run a business and grasp basic mathematics?
For management to call a 10 cent per share reimbursement to shareholders "a gift" is among the most egregious abuses of fiduciary responsibility I have ever heard attributed to any public company's board of directors or management teams. This story deserves front page coverage in Barrons. Where was ANY 8-K commentary regarding ROHI's untenable debt or the possibility of bankruptcy?
That's a remarkable link, joey.
I am sure glad that I don't work for the auditors who obviously were incompetent to fail to see so many warning signs of an obvious financial TOTAL CORPORATE COLLAPSE, as management is apparently now stating.
WOW! I hardly know what to say. A company that refi's in December and recently stated that it was profitable on an operating basis now says it is a basketcase and must have "forgot" to issue PR to inform shareholders of its pending bankruptcy?
Stinks, stinks, STINKS... IMO.
Previous PR stated that the 10-K was expected to be filed by 4/16/13. Nothing has been forthcoming, as of this hour, as best I can determine. At midnight, tonight, as I understand SEC reporting requirements, ROHIQ is in default on its filings and may be in violation of OTC Markets listing requirements. Their FY ended on 12/31/12... tomorrow is 5/1/13, four months with no released/audited Q & FY results, all in the middle of an "arranged bankruptcy" (?) that could wipe out virtually 100% of shareholder value (except a lousy dime) with NOTHING to go on but prior management PR that seemed far from dire, IMO.
This is serious, guys. The majority of shares appear to be held by insiders who could, as I understand trading rules under Simpson-Bowles, be precluded from trading shares until SEC-required financials are filed and made available to the investing public. That could make common shares illiquid, pending either financials or news.
Too bad J.T. isn't here to lend insight into this. Anyone else care to venture an opinion?
You raise some excellent questions. The link I posted the other day from 2010 specifically stated from ROHI management that there was a risk of BK when both Tier 1 & Tier 2 notes were coming due and doubt remained over whether alternative financing could be arranged. Subsequently, both layers of financing were, in fact, redone and I recall zero mention of BK since... just the usual "safe harbor" baloney that every company issues. I fail to see where any warning shots were fired, including by the auditors who issued no "going concern" warning. You are correct that in KADR's case, ample warning was given by both the board, management and by the auditing firm.
I actually think "the industry" as defined by others in the homecare space has huge merit and represents huge opportunity, even with all the vagaries of the ACA and the political fumble-rooskie that the politico's keep juggling to keep the lobbyists happy (if that is even possible). Look at the latest VA contract award: 8 cities, $68M, and that doesn't even scratch the surface of Medicare & Medicaid who truly are the 800# gorilla. The market dimension is enormous and sure to grow as boomers retire. It all boils down to the logistics and math of cost-effective homecare service.
Rotech's branch expansion was, IMO, a double-edged sword in that acquired mom-and-pop's were often bought at outlandish prices, driving SGA through the roof, and making integration and billing consistency difficult leading to overcharging claims, settlements and the current, pending action if derived from a similar complaint by the Feds. I know more about Lincare than Apria and, being private, neither publishes metrics so I only have prior data and a visceral feel for their economics... but it is my strong sense that their cost structure is a lot lower than Rotech.
If ROHI's board manufactured this BK out of opportunity (to simply rid the balance sheet of very costly debt) at the expense of shareholder equity, I would think this is improper and possibly patently illegal, especially if management is cutting themselves in for a juicy chunk of equity in the new, debt-reduced ROHI while giving the shareholders a pitiful ten cents per share.
Stay tuned. I think that this will be very interesting to follow, especially with only two days remaining to file the 10-K.
Hey, sharks serve a purpose too, which is why they are a largely protected species. There are times in the investment world when you would trade your soul for a good "New York J-boy Lawyer" (with no slur and great respect intended), and no substitutes need apply. I think that Rotech is one of those cases where the ONLY salvation for shareholders will be legal action to stop the runaway gravy train to steal ROHI from common share owners. That's my opinion, only.
Were I a shareholder in the present ROHIQ environment, I would gladly trade 50% of a possible $10/share settlement for the crumby dime that Rotech's Board of Directors is attempting to foist off on shareholders because noteholders were GIVEN a sweetheart deal and first-in-line rights to all the assets so they could enjoy an almost usurious interest rates on the guaranteed notes they issued that CRUSHED ROHI's future.
Of course, then there is the management that secured huge contracts that they could only fulfill at a profit by throwing shareholders under the bus... but that's too lengthy a discussion to fold into this message. Only a really good Wall Street legal house can help seperate the fact and the fiction of this bankruptcy. Was the BK because of "legacy debt" as claimed by Alsene, or is it because management gave sweetheart deals to noteholders, accepted contracts that were untenable or conspired to dump common shareholders so management could enjoy a big, personal gain in shares in a new, debt-relieved Rotech?
I think I would be welcoming to the attorneys in this fracas if I were a shareholder. The only way that the little guys will see anything from this mess is if a few aggressive lawyers turn this "kissy face" bankruptcy into a smash-mouth contest of right versus wrong, IMO.
I agree, nice find robb. I was not very familiar with derivative actions like this, and overlooked that possible outcome. Thanks for the reminder. Sadly, it looks like most of the remuneration goes to the attorneys, much like the class action "round robin" that I am watching play out over at XIDE. Sadly, the shareholders rarely get much out of these deals, but at least can occasionally play "spoiler" and disrupt management's agenda when misaligned with fiduciary responsibility to the shareholders.
In the case of ROHIQ, I frankly expect something different will ensue... a "Show Cause" action by Wynnefield to demand the board of directors explain their actions vis a vis a possible criminal action for fraudulent dereliction of duties. This would be an important first step because a successful complaint in a criminal action would be a prima facie guarantee of a successful civil litigation for probably all the company's assets. Again, I am no lawyer, but it is my understanding that this might be the ONLY way in a court-ordered action whereby the claims of shareholders rise above the rights of collateralized noteholders in settling a judgement.
The "Far Out" second possibility would be a Wynnefield orchestrated RICO action to pursue a civil litigation against Rotech from another angle that could be justified by board actions (and inactions such as failure to address high SGA costs when courting and securing lower margin contracts). This kind of action is surprisingly not that remote and actually could expose board members to some personally difficult and expensive outcomes.
Who knows what will happen, but I still predict the melee will be well worth watching, IMO.
What a loss to constructive and entertaining dialog, two things that are hard to come by in this medium. When Yahoo went over the top on censorship and deleted gobs of ID's and messages, it drove most of the meaningful posters elsewhere. Now their board is nothing but worthless spam and sophomoric bickering between l'enfants terrible.
TOS is a GOOD thing, if it respects the reality that these boards are an organic, living/breathing entity populated by people with an agenda... for some, it is a financial motivation... for others it is a dedication to an employer or a denigration from a discharged employee or competitor... or umpteen stops, inbetween. Longs, shorts, pros, cons, ad nauseum, all offer a reason for posting an opinion.
You can respect those opinions. You can disagree with those opinions. Or you can Play God and decide that in your infinite wisdom as a message board monitor... not a vocation I really admire... that you enjoy some divine priviledge to simply erase or "manage" their posts so others can't see their views.
I think that IHub is flirting with a disastrous outcome.
Be very glad that you sat out the ROHI endgame. It will be nothing but guts and adrenaline until the outcome is revealed... if that ever even happens. Look at the denouement of Arcadia Resources if you you need clarification on this point.
Good luck to J.T..
Only offline until 5/3. What a shame. There's so little meaningful board traffic to begin with.
ROHI not looking good. No 10-Q. No filings. No PR.
Yawwwwwwwwwwwwwwwwwwwwwwwwn!
What to watch for next...
The audited Q4 and FY12 10-K are beyond overdue and beyond the timeline management stated for their release, by my recollection. They either MUST be released or I believe OTCMarkets will downgrade ROHIQ to Pink Sheets or BB status and the trading shares run the risk of oblivion in a largely unregulated no-mans-land.
That would NOT be a good indication of future shareholder prospects. The countdown timer runs out on 4/30, as I comprehend SEC Regulations (though I am not an expert).
My recommendation would be to only hold shares here with a hair trigger to sell and run for higher ground.
GLTA.
I would just remind you all, as J.T. and investor2004 have stated repeatedly, there is a reason why Wynnefield and Nelson Obus bought all those shares, of late, and I can assure you that they were well aware of the prior filings and statements by management, as I have exposed them.
That said, I think common shareholders might benefit by hanging on, just to see what happens. Never forget that one of 2012's top performers, investmentwise, was Waste Management. Maybe this will turn into valuable garbage as the dust settles...
Glad that I have no skin in this game, and I wish well to those that do. Never forget that amidst the seeming insanity of shares and S/P manipulation, there actually is a vital, living, breathing company with 4,500 employees and a large clientele dependent on them for home-delivered oxygen and durable medical equipment. There IS value, here, for someone. The big question is will any of it repose with the shareholders or has an "end run" diverted everything to the inside cabal?
I think I would "hold" if I owned shares, here, and see what Wynnefield has in mind. At this point, there's not much to lose unless you were the guys that bought at 9.5 cents a few weeks back. I do not think that these guys at Wynnefield are dummies.
JMO.
In 2010 ROHI management stated it might have to pursue BK if it could not refinance its debt. Then it proceded to do precisely that. It also stated that it accepted CMS contracts at around 30% off the prior Medicare payment rate during the Round 1 CMS Re-bid, stating that they could make up the shortfall on volume... or words to that effect.
Now fast forward to 2013. Anyone else finding a problem with truthfulness, here?
http://www.thecre.com/BidNews/?p=1495
Something is out of kilter and a seemingly cozy "arranged" BK looks very suspiciously like shareholder rape. This looks like breach of fiduciary responsibility and possibly something much worse. Is it actually possible that "the fix is in" going back years ago in a set-up deal to wipe out shareholders by willingly accepting untenable contracts to require another BK, then cutting management in for a stock share in "The New Rotech" after the shareholders get a lousy dime?
All JMHO. It STINKS around here!
Sorry Robbay,
Sorry to see you insulted. Walgreens is doing well, but faces enormous challenges in the Q's ahead.
That's why I left this board. Pessina just bought 86K shares, but the sophomoric discussion devolves to your sushi comments which are correctly attributed to Jim Cramer vs. the Moderator's long position and blind devotion to Walgreens, despite its transparent weaknesses.
What does it matter. He'll just erase my message and continue on with his mission to promote Walgreens. That's the I-Hub way!
Bye!
Yank
NO NEWS is really BIG NEWS. No Form 4. No 10-K. No PR. No explanation.
This is a warning shot across the bow. Starting to look scarily like AONE... asset sales and run for cover at S/H expense.
NEWS required by SEC reg's and ignored by management, as previously committed, is NOT a good sign.
I'm just saying...
Good luck, guys. This one is going from bad to worse, IMO, for shareholders who will likely get raped w/o lubrication without intervention from Wynnefield. If Nelson waits too long and the Trustee acts, the die is cast and shareholders get cornholed. I've seen it happen before.
Sucks to be long, here!
Look for news after the market close, later today.
The entire market is laying low. I think a lot of it is residue from the Fiscal Cliff garbage and fear that 2013 cap gains would get hammered, triggering a ton of late December selling. This has really visible on NASDAQ big gainers like AMZN, GOOG, CMG and PCLN that had huge runs that paid a lot better return under the 15% cap gains rate in 2012 vs. a possible 43% in 2013. The more people sell off, even for good reasons, the tech players all scream "broken resistance" and shorties jump on the pile.
Then Tax Day comes around on 4/15 and those that cashed out big gainers in December have to settle with Uncle and sell off more stock to pay the taxman. I went through this precise scenario after selling a ton of Amazon that I bought at around $10.50, years ago, and finally took the obscene profits in 2012. I am NOT complaining, just commenting.
All the CNBC talking heads are beating the wardrum for the "Sell in May" hindsighters and a lot of retail traders take this rubbish to heart. In my opinion there is better than a 50/50% chance that some form of Grand Bargain budget deal will get struck before Congress's summer recess. If this happens, I think you could see the Dow surge and pull every major index upward along with it.
"All is well" and I am fully in for the duration.
If the Dish deal with Sprint-Nextel goes forward, you can expect The Cup expense will be one of the first things to go. NASCAR was Dan Hesse's thing and was a costly misfire with scant deliverable benefit to shareholders.
PHOT's Marketing Group needs a total overhaul. Co-sponsoring events with NRML is so passe and is like an embarrassing throwback to High Times centerfold of glam-photo'd marijuana plants. Who can ever forget that purple-gold layout of Maui Wowie?
Maybe these clowns should quit looking for bell-bottom jeans in retro shoppes, get a haircut and take a page from the NRA by lobbying for medical marijuana treatment in a sophisticated and organized way, planning to add decriminalization opportunties such as in Colorado as the social objections continue to break down across America.
Masquerading behind some "blah-blah" crappola about growing hydroponic tomatoes with PHOT "technology" is just totally embarrassing and obscures the potential future which is HUGE. This company is about growing marijuana. Its products were primarily developed to hide indoor production from the DEA, reminiscent of the moonshine stills of a bygone era, but the legal climate is shifting... for better or for worse... and the opportunity is too large here to obscure with rubbish.
What's next? A co-partnership with Disney to co-sponsor The Land exhibit at Epcot by growing eggplants? C'mon, guys, get serious.
I am personally NOT a stoner and I really am somewhat averse to the "herb" as you guys like to conveniently describe it, but from a pure investor perspective this stock has huge upside. If it is marketed legitimately, within legal boundaries, and can offer some serious medical and cost-to-treatment benefits vs. so many over-prescribed/abused opiate Rx's that are far more ruinous to America's social fabric, it could have an enormously welcoming entry into modern pharmacopeia.
Understand this... the DEA would much rather deal with non-addictive abuse of cannabis oil vs. the hugely addictive evil of oxycontin/oxycodone/percoset, et al, and all the associated crime that flows from opiate abuse. PHOT could actually help resolve a lot of the drug cartel influence on America, simply by restrategizing how it promotes its business.
PHOT will either get smarter about how it runs its business, or another pharmaceutical house will overrun their niche and sieze the moment.
All IMO.
robb,under Sarbanes-Oxley in 2002, the SEC requirement is now 2 business days. Partial days do not count, so you are correct in thinking that Friday would be the day of admission for a form 3 or 4, the latter seeming more appropriate. I do not know, however, if such a filing must be made prior to or can be made after the market close.
I remain of the opinion that the content of the 10-K is much more meaningful than any insider purchase or sale, arranged or otherwise. Once a stock files BK and enters Q-land, a lot of share activity normally ensues from arbitrageurs who live and die by the micro-second. This activity is often most intense when a thinly traded stock with a narrow float is involved. Sound like anyone you know?
Betcha Reimers cashed out his shares at a premium to ten cents. An arranged trade with the MM is often insider driven, although the scenario more typically is the purchase of shares for management performance awards. The round number indicates Reimers since he is the only director to hold that much share value. If I am right there will be a Form 3 filing to follow in a few days.
JMO.
robb, I can never predict what a court process will conclude. I only know that what my gut tells me is proper. I definitely smell a rat, here. I actually thought about buying shares here, today, although I did not. I refrained because I fail to see SEC intervention in any way in way too many cases like this, as was, I believe, investor2004's point, earlier. Why would I presume that they would do the right thing, now, when so many prior disparities just defaulted to the BK food chain advantaged noteholders who raped common stockholders and didn't even use KY jelly when they violated them and stole their cancelled shares.
This ROHI deal really, truly SUCKS!
Tom, you are right but don't seem to grasp the Walmart system. Controlling "outs" in Walmart parlance is at the top of the business plan strategic pecking order. However, keeping the empty slots empty is critical to getting them refilled. That is because Department Managers are required to scan the shelf tags with a Gemini handheld for every empty slot and zero out the inventory quantity so that a replenishment is automatically scheduled for the next delivery to that store. The holes are supposed to be scanned daily, but often get done more like once a week. The MOD is set, monthly, but Department Managers get a daily e-mail with changes to correct outages from vendor issues which are frequent since so much of the merchandise is sourced from overseas.
Other retailers like Target simply infill the empty retail slot with some other product. Four facings for Corn Flakes become eight facings to cover up the fact that Raisin Bran is on backorder or the computed inventory count is off because some boxes were damaged or stolen. That's great for shelf appeal, but the assortment gets trashed because the consumer does not have the choices that they expect. Walmart red-flags the out, and either refills it or replaces it with an alternate product instead of just prettying up the shelf with zero net gain to the sales line.
The Walmart system is actually very efficient.
I hear ya. I'll follow this for awhile and do some digging. I lost a bundle on Sandridge so this sector worries me, tho I made a ton on Cheniere(CQP) which I still own a lot of, and did very well with a series of up and down trades on CHK as Aubrey blew his foot off, then the company recovered despite his antics.
Keep your eye on CLNE if it gets below $11... it always makes a subsequent run back to $30. Also BLDP which is showing recovery pains that could signal a rebirth if the Canadian government refocuses on energy technology that drove it over $100 about 10 years ago.
J.T., I left you a response on the PARR board regarding your question. My college roomate and fraternity brother's dad was Kirk Kerkorian's private pilot and I do follow his exploits, somewhat. I have high regard for him, although I never met him personally.
Depending on your tolerance for social issues, you might just want to check out PHOT for a ginormous pop.
JT., I believe Kirk Kerkorian/Tracinda is actually suing Delta for the BK that wiped out his interests, and that his suit if successful could sink Par for good. It's a suit, so who knows the outcome.
As Tom Cruise once said: "Risky Business."
Guys, this BK is all BS, IMO. Read the 8-K of 3/27, which I just reread. Make sure you read page 9 of the Attachment 99.1 which clearly points out that EBITDA in 2012 was impaired by $13M reflecting the CMS decision to cap Medicare Home Oxygen care for clients, much of which reverses out in Q1/14 to begin a new client-care cycle of reimbursements. In prior SEC filings, the management blamed Medicare's decision to cap home oxygen reimbursement at 36 months as a key element in degrading its metric performance; now it points out that the lapse period is about to expire and re-open the opportunity.
ROHI claims it must BK the company due to legacy interest costs, but the preliminary figures released-to-date show NO big spike in interest payments for either Q4 or for FY12. So why the panic? A huge chunk of profit is reinstalled in less than a year, even before the new VA contract is factored in. And two of the noteholder deals were consummated in 2011 & 2012 which is hard to foist off on legacy from exiting the prior BK in 2002... the Tier 2 notes aren't even DUE until 2018, by recollection.
This REALLY stinks for shareholders. Where is Jerry Springer when he is really needed? Looks increasingly to me like a conspiracy to gangbang common shareholders.
All JMO.
What a shame that the Exide Board over a span of 25 years had so little insight into the company's business and mission that it chose IDIOTS to run it into the ground. This company in all its sad iterations should be course level material at The Harvard Business School for how NOT to run a public company, or ANY company, for that matter.
When the doddering fool Bob Lutz decided to buy GNB after the Hawkins debacle, he proceded to tie an anchor to Exide's neck from which it has never been unable to free itself. Just look at the aftermath: GNB/Scranton, the Frisco Smelter, now the LA Smelter, blah/blah/blah... plant after plant, smelter after smelter, location after location, sales branch after sales branch proven to be worthless or, worse, hugely costly to even keep or shut down.
Reilly should at least step down or maybe even commit suicide for the harm he inflicted on all constituents and the literally thousands of lives and $ billions of shareholder dollars that he ruined. As for Balch, well that is just one letter removed from BELCH.
JMHO.
investor2004, kudos for your last post to robb. I agree almost totally. The current environment is casting a pall over people investing in the common shares of even large companies facing challenges. The GM example is one I earlier referenced and I fully concur.
Thanks.