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Yes, a strong break out would be good. Per yahoo finance, the book value is $1.00. Now those numbers are probably months old. That's one of the reasons why I would really like to find some updated info. If we just get a decent percentage of that value, it has a lot of room from here.
Ok. I was having trouble finding updates, but I agree that there should be upside here. If they liquidate the assets, pps should be worth much more than .04, IMO. Thanks for the response and good luck!
Hello, saw your posts. I have not been able to find any info about where they are at with their liquidation. Know their book value was showing way above where it was trading. Have you found any sources for information? Could be a great value here. Thanks.
Ed, Folks really just don't understand what we have here. Look at the valuation you referenced, that is entered on the docket. Look at therir own balance sheets and Monthly Operating Reports. They all confirm that there is approxiamely 1B in Assets above Liabilities!!! This is like a gift when the Judge ordered the Trustee to appoint an EC. It was obvious the creditors appeared to be trying to "steal" the company in cohoots with current management, see generous retention bonuses. They didn't want an EC because they knew they would have to share the company with the shareholders with Equity representation at the table. Hopelessly insolvent seems laughable with what is in these reports.
As far as CODI goes, my understanding is it couldn't be applied until they exit BK, which is a long ways off. There is not a guarantee it will be applied at all, depending on how they handle their debt.
I can see this getting to $2.00-$7.00 based on the reports referenced aboveboard, but if a white knight comes in to buy the company, who knows. No brainer from here.
All above, in my humble opinion.
Bingo! Huge difference. Equity valuation will be in multiple $'s, IMO.
Could be. Wait until we get some real buying pressure. Still relatively low volume last two days. This could go $ very easily, IMO.
So it is up to management whether, and or when to implement CODI?
I agree. It appears JIG and blue earth are in bed together to just "give" the company to jIG. JIG is a large shareholder and they are trying to recoup their poor stock purchases by screwing the other shareholders by being the DIP financier, and the leaders of blue earth are going along with it. If the assets are more than the liabilities after the creditors have been paid, then shareholders should receive some compensation for their shares. Like to think the judge would not allow it, if this is the case. Also, who knows, they may be trying to screw some of the creditors also. All this IMO.
Would not be surprised at all. Does seem like someone knows something, or they are trying to load up for a big run. I have continue to add. Looking forward to next week.
Yes, looking forward to it, especially as oil continues to rise.
Held up well and strong close coming. Hate we have to wait until Tuesday to see where we go next.
Saw that. He gone now! Teens on deck.
Someone has definitely found out something they like and wanted to make sure they were in.....wouldn't be surprised to see teens + today.
Haven't heard, but will stick to my original hypothesis that someone found something in those filings that leads them to believe shares are worth a lot more..... Hopefully a repeat of UPLMQ is is beginning!
I have been holding patiently and adding along because it is really difficult for me to believe the shareholders will get nothing with the assets being what they are. Apparently someone has found value here. Interested to see where it will go.
Someone must have found something they liked in the deluge of court filings released yesterday and today. Many are "statement of financial affairs". Plus crude price has rebounded. Think several of us feel there is a great value here. Maybe the price will start reflecting what we think.
I have been keeping up with the case on Prime Clerk. I must have missed this ruling by the judge. Is that where you saw it? If so, which docket number is it? Thanks
It was 127,501. We will see what happens today.
Big buy went through a little bit ago. Wonder if someone knows something.....
Yes, the court are receiving several letters from shareholders all citing why companies claims to be protecting shareholders interests appear to be false. An Equity Committee in this case is needed.
Yes, they are working hard. I like my risk/reward scenario better than theirs.
I'm still adding to my position as well. I'm willing to take this risk/reward scenario.
Yes, would be extremely difficult, IMO, for them to be able to spend or explain away 1.3 billion. This has barely gotten started, and as you stated, the Judge should consider the evidence and make a ruling, and that ruling will be challenged and objected to whichever side it doesn't favor. This is far from being a done deal with shareholders getting nothing.
If the conclusion you draw is true, then the insiders would be nothing but a bunch of crooks. Even if that were true, the judge could still approve an equity committee .
Judge could deny the requests, but I am betting he will grant them, due to the assets above liabilities of 1.3 billion at filing. Guess we will see.
If not the Judge, then who should the shareholders petition to see that their interests are considered when approving the re-organization plan? Apparently not the company or BoD, in this case. There are several requests from shareholders to the court on the docket coming in. Who should they go to? Thanks
It is not incorrect in every case. Not every bankruptcy ends up with common shares being cancelled without the shareholders being compensated, either with cash or shares in the new company that emerges.
Sometimes they are cancelled without the shareholders receiving compensation, IF there is not any equity value to share after all the creditors and liabilities have been taken care of. In this case, based on their disclosure in the filing, there is quite a bit of assets over liabilities to the tune of 1.3 billion by their own admission.
I will agree with you that the common shareholder is last on the list to be compensated, but that does not mean every single time they will receive nothing. It is on a case by case basis. I was in CEMJQ, a few years ago. It went from .03 to $1.78 during the bk process. When they merged from BK, after about a year long process, they ended up giving the commons a valuation of $0.27 per share. I had already sold all my shares by then.
I will take my chances here. This has potential for a multi-bagger written all over it, IMO. UMPLQ went $0.16 to over $2.00 in about 5 weeks time, and I think they were in worse shape than BBEPQ. They may end up with nothing when all is said and done, I don't know, but they have had a great opportunity to make some $ in the process.
I interpret making sure the law is followed as treating everyone fairly, and by everyone, I mean all the stakeholders. The law should prevent the company or creditors from taking advantage of the situation, one would think.
I agree, it seems they are not doing their fiduciary duty as leaders of the company to ALL stakeholders, as you explained in your earlier post. This is why I would be absolutely shocked if the equity holders aren't represented and given appropriate compensation when the company emerges from bk. Company is worth way too much!!!
It is the judge's responsibility to make sure everyone is treated fairly. I was hoping he would rule on this yesterday so the stock would move closer to where it should be trading, not where the panic has taken it to.
Thanks for your posts.
Ok. I will keep watch on the docket list. I will post if I see anything. Think oil being down again today, hurting it today also. Equity committee gets approved, we have a multi-bagger.
Didn't see a ruling on an equity committee yesterday. Do you know if they are back in court today? Saw several requests from stockholders to the judge for one. I would be shocked if the judge didn't appoint one with 1.3 billion above liabilities when they filed. Plus oil is higher than when they put together their balance sheet. Thanks
That is exactly what I was describing in post #412. JIG trying to take the whole company for themselves. Know they got stuck at some higher pps on some of their positions, but they are only providing 3 million in DIP financing. That should not be enough to give them the whole company. When they filed, the assets out weighed the liabilities by about .84 per share. Know the attorneys will suck up quite a bit, but not $80 million worth. We need an equity committee badly to represent the shareholders interest.
Btw, be very surprised if the court approved this plan either way today. Even a mention of an equity committee sends the stock in multiples from here, IMO.
Seems like a daily cycle for past few days. Be very surprised if we don't close good and green.
Think some folks recognized an excellent buying opportunity this afternoon.
.08's are back up. Buying volume coming in.
Appreciate it, I am trading commons and have traded many of these before. That statement is a common disclosure statement of companies when filing bk. Not concerned over that. This will probably take months before the emerge from bk. Thanks, but only thing I am worried about why folks are missing a great opportunity, but that is their decision to make.
I don't know what the company or the share structure will look like when it emerges, but they can't just screw the shareholders out of their equity, if their is equity there, and per the filing there is. Folks aren't wanting to recognize that. The court has to approve any plan. The company can't just do anything it wants without court approval.
Agree 100%. I have traded many bk's and never had to deal with CODI. Any insider that sold had to have planned in advance. They can't just wake up one morning and decide to sell. I had posted this several days earlier also. IMO also, not an indication of how we should trade the commons. Great opportunity here.
Know what you mean. Difficult to understand the price action. Guess the fear mongering is working.....for now.
Thank you as well. I'm not worried about it.
Great information! Thanks for the post. I have traded many bk stocks before, never paid anything but regular income or capital gains taxes that were applicable depending if was short term or long term. Does seem like it is being thrown around here to instill fear.