Moving the Shrimp to Fiji, if the plan works.
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It was nice to see someone else grab off the remianing supply at 1.5 cents this morning. I am tempted to offer up to .009, and support my purchase, but if someone else would pay 1.5 cents, why bother? The supply isn't there. Bid price means nothing.
I'll see if I can scrape enough cash to offer .11 for 15K and show you what I mean. Who wants to fill me?
This is my last post today, so I can't answer any questions.
15 is all I get until happy hour.
"I'll be back" ~ Ahnold. "The Terminator"
"The company said in its filing that it is seeking court protection because its financial position was creating uncertainty among its suppliers and because its cash flow problems "could severely impede" its operations."
"It had $476.1 million in assets and $426.7 million in debt at the time of the filing Wednesday with the U.S. Bankruptcy Court of the District of Delaware."
(50 million in shareholder equity)
http://hosted.ap.org/dynamic/stories/U/US_EDDIE_BAUER_BANKRUPTCY?SITE=INKEN&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-06-17-18-46-40
In other words, If you want access to a block of shares that currently represent 2.5% of the company, give me a holla.
Being in BK only means that you have defaulted on a loan obligation and cannot pay your current debts with the current cash on hand.
Between the DIP financing, and the $202 million offer, I think they got the cash angle covered.
The biggest worry here is if the judge gets all cornball and insists that the BOD is entitled to their "golden parachute" for poor management. They should be behind either a) behind the stockholder claims, not in front of them or; b) already recorded on the balance sheet as an existing liability.
If C) then fraud.
You are going to use Yahoo summaries instead of the 10Q dated April 4?
http://pinksheets.com/edgar/GetFilingHtml?FilingID=6604915
Go straight to the bottom of the balance sheet and read the "shareholders equity" for me. Then read the Sarbanes-Oxley certifications, and tell me about fraud.
If I go after them, they only have to pay me. If Uncle Sam gets them; they do 20 years with Bernie Madoff.
It is where I live, and I know the buyer personally. I actually watched as he pulled the rug out.
I just love pulling the rug out after buying up the supply. 94% of the shares traded yesterday was some nut from Hacienda Heights.
The common shares will be bought, not cancelled. They represent the remaining equity after debts are paid. That is what shares are.
DIP financing says that the BOD continues to have a fiduciary responsibility to the shareholders. Any less than that is FRAUD, and they can be held personally liable.
Absolutely right. They simply need judicial approval of any sale under the filing. They have it, now they have to work out the exact plan. They have to work out the deal with the $75 million convertible holders. Easy as pie. Pay them out of the $202 million. Equity goes to $150 million, and they get it for $127.
Simple numbers. No monsters.
You can allow for a discount to the buyer based on recent operating losses. I still would think it is worth $2 minimum, and $3.50 might be generous.
Is the buyer a nutcase? He should be buying the stock hand over fist. Each share he buys would save him at least $1.75 on the final offer, IMO.
As an insider, he has only has to follow specific rules of reporting and trading. He doesn't have to shun trading entirely.
The SEC is scary, but they aren't a monster under your bed. There are no monsters under your bed, children.
This is how it plays out against the most recent balance sheet:
$202 million is offered.
There is $75 million in shareholder equity, and ~30 million shares outstanding.
There is a $75 convertible debt.
If the debt is paid out of the $202, the equity increases to $150 million, and the offer is reduced to $127 million.
If shareholders get less that $4/sh, you got stiffed.
Nothing in the Ibox on that topic.
Somebody gave me a link. It looks like a buyout offer with contingencies. I did the math. It seems to be worth a chunk of change. Certainly more than 20 cents.
Can anybody get a detail sheet on the contingencies, or are we expected to trade like blind men? This deal should almost be written in stone already with an arbitrage value assigned.
They are paying $202 million for the brand name, and if you ask me, it is worth every penny.
Meanwhile, market cap languishes at 6 million. You are joking, right?
Hey joinfree,
You seem pretty good at digging up BK deals. I don't have a paid account. I took your other rec and bought 2000 shares.
To me that looks like about $6 a share buyout, with contingincies that could lower it. I'll take $2 for a 24 cent stock.
It says the deal is set to close in less than 60 days to boot. I am going to check the preferreds, and then look at some of the debt to make sure there isn't some poison in the mix.
The $75 million convertible respresent a wild card right now. It will depend on their default status, and whther the BK judge would allow it to turn into poison. If the judge says "no poison", then they get only their $75 million plus interest, and common holders get $6 ....
Once a BK is filed, all parties involved are at the mercy of the court.
They can do it so easily if the debtor chooses to convert less than 5% at a time. If the debtor refuses to convert all at once, he doesn't gain control. Therefore, the BOD simply offers the stock to the public at the conversion price, and provides an allowance, allotment, or claim to existing holders. Piece of cake. By doing do, they likely force complete conversion by the debtors, and thereby underwrite the offering without having to talk to a stiff shirt investment banker.
It also registers the shares of the debtholder, a detail they have to attend to anyway.
C'mon now. Hurry up and whack the bid. No way this closed at the high of the day after busting out like that. Leave the market open for the bidwhackers. Something is wrong here.
I don't know about you guys, but I think I put a small dent in the supply.
Ran out of bullets;)
I said "into the close" I have to give them time to refill the ask. You would think they could move faster with all of those computers, but it just isn't so.
Every once in a while, a trader takes a moment or two to think before he pushes the buttons. Around here, it has been: Put 5000 shares on the ask, and scare the suckers into selling cheap. I just figure they were using that tactic for a long term purpose.
I hope you do well with it. I am just accumulating to make a market here until the ball gets clearer. I hate hitting the ask and taking down 5k shares.
Who ever decided that 5k shares on the bid or ask in a subpenny stock was considered quoteworthy is crazier than me.
You do know where the name "temp" comes from, right?
tempinsanity.
I am just permanent now. Bagged another 40k.
You guys don't want to join the party, or what? I am going to push it to the close. Fair warning.
I am really surprised that this isn't going to the moon. The BK filings with the court are clear as mud as to where this is headed.
Maybe the chart will clue us in? It will talk to me at the close. It touched the BB, then filled the gap and snapped back to the 50day SMA. If I can push it back to the BB by the close, what happens?
That would be me again. I hope this pig don't get slaughtered. Oink oink.
They actually whacked me at .01 for 50k, and then whacked my support as I was refilling it.
I think I took them from NYinsomniac. He wanted out.
Only sure about one thing. There isn't any supply but in my hands.
Demand is weak because the lawyers don't know how to file 8k's
I have over 500K shares now.
Of course, my intentions related to the boarding of ghost ships are clearly outlined in this 13D filing:
http://pinksheets.com/edgar/GetFilingHtml?FilingID=6611450
Got shells?
The last element I saw was an attorney pulled representation of Aleritas after the stipulation was made that "an entity" was to declare Chapter 7. He pulled out after Brooke filed for Chapter 7. The US court system maintains court records under the PACER system. It is a "pay per view" internet site. Since the Lawyer pulled representation, we might be waiting for another one to step up, and file a motion to close the case. The guys on the BOD seem to be clueless on how Chapter 11 works.
It is my belief that Aleritas is "out of Chapter 11," and is awaiting the action of a major shareholder to reorganize the Board of Directors, and complete restructuring to collect the debts and pursue a new business model. This is merely speculation, and "Caveat Emptor" should be applied until a press announcement is made.
On the other hand, this could actually be a ship set adrift by morons and lawyers. If it is merely a "ghost ship," it isn't the first one my crew has boarded.
You know what this really means?
The Overland Park, Kansas offices were sold.
"Toto, I've a feeling were not in Kansas anymore"
I called 411, and can't get a number in Kansas for Aleritas.
I think the wicked witch and the flying monkeys kidnapped Dorothy.
Reiderer is rehearsing the words to; "If I only had a brain"
Maybe Oprah can loan us Dr. Oz for the grand finale.
Do you think I am lion? "Put up your dukes. Put up your dukes."
Pssst. Lifegear. Check out that other BK stock.
It looks like front runners are pumping for a push. Not my MRDG. You know the other one, right?
I just pulled a massive AON off of the top. I will take more money. They convinced me.
It is strange that anyone would pump it. I am almost the only person who has purchase shares in the last 3 months. I must own about 75% of the last 3 months trading volume.
I know what you are talking about: trading.
You know what I am talking about? Investing.
Unless they give me the option to purchase the convertible, the actual conversion of debt into shares is immoral if not illegal. There is a precept of dilution that is broken. Current stockholders are generally entitled to be treated equally as a dilutive event.
They should have written a secondary offerring to coincide with the change in the conversion price, or declared chapter 11. they are either physically or morally bankrupt.
The secondary is actually very easy to accomplish, and fully dilutes the shareholder interest on a specified date. Then life goes on as if the "tragic hallucinogenic experience" of the Board of Directors had never happened.
Just my two cents; with compounded interest.
Only the building was sold. Brooke is basically being run (down) out of the Lawyers office and being sytematically (looted)liquidated to pay off its debts.
Apparently, one of the first things they did was sell off the core software which ran all of the franchises..
Anybody old "Data Processing" expert from the 80's or 90's knows that one of the key reasons a business fails is catastophic data loss. That particular observation led to the invention of RAID IV and Raid V disks.
I hope Aleritas comes up with a good tort lawyer to point out that the "franchisees" didn't sue until after the software was unplugged. That leaves Aleritas with the cash, and the franchisees to sue the parties responsible.
Where are the bidwhackers when you need one?
What is the real estate business like in Dallas these days?
Are they building on the new site yet?
I am still waiting for the connection to be made:
http://finance.yahoo.com/news/Genesis-Worldwide-Announces-iw-15339250.html
Was a "so-called" private company in Canada in the coil steel business. Amazing how they got the name and the coil technology from the US BK without any mention of the sale.
The assets were sold to a different firm in the US, not to Genesis Canada. Only US subsidiaries were involved in the BK. It was a "worldwide operation." Maybe Canada foreclosed on the Canadian sub? What do you think?
I think if it walks like a duck.
I have seen companies come out of it. They had a nice balance sheet with those convertibles at 81 cents. At half a penny, they bring down the top substantially. Still a good risk/reward if they can hold the bottoms and turn a profit. They can't keep losing money every quarter and expect any good to come of it. A lot of companies fell into the "market share" trap. Put all of the competitors out of businees by taking market share, then come in with a profit. Before you get to profit, an upstart starts undercutting you.
Wasted efforts. Pay yourself first. That goes for investors too. If the management isn't paying you, get out.
I used Kalamazoo yesterday because I couldn't being myself to say "Bom Phuc" I heard the place actually exists in Egypt, but I am having trouble finding the link. Maybe an urban legend?
I suppose there is a lesson to learn here:
When riding on the shirttails of a genuis, you keep the genuis around. As you notice, he is starting to pick the talent back and put it on his team at Max.
Canopius could wallow a little while longer before the rats start leaving the ship.
Maybe Becker hung around with Buffet long enough to learn how to play poker. If you are in the game for more than fifteen minutes, and don't know who the mark is........
How ya doing, Mark?
Isn't he the one who converted the assets to pounds?
I wonder if he pulled the reverse miracle for MAX?
I bet the IPC attempt was a "buy low" strategy.
http://www.exchange-rates.org/history/GBP/USD/G/30
At least he left the wreck on a strong foot. It wasn't his fault that canopius couldn't see how. The pound event is what eventually caused me to throw in the towel on the wreck.
Those guys at Canopius must be feeling like a bunch of regular "Warren Buffoons" International liabilities with country specific assets. Pure genius in diversification, not?
Watch for a forced dip into a conversion event here. They will try to convert less than 5% to stay under the radar. Then the Next 10Q will show another increase in the O/S shares.
As Ben Graham used to say, I have already seen how the cash register works. I am just waiting for the votes to be counted. In the mean time, I will just sit here and stuff the ballot box, k?
If you want to really sell that cheap, bring in some supply. I am waiting for the real ones.
If that 2.4 million flowed into ARTA, my shares are worth a dime.
It would be nice if you lawyers too a little of that cash and put out a PR as to where it goes. I don't want to have to pay PACER to find out, but you can certainly bet on me scrutizing the next monthy report you file.
Maybe I will do it on July 4, and celepbrate freedom of the press in America.
Has anybody else figured out why ARTA no longer needs a BK lawyer?